EPR August 2014

MAHENG/2012/47805

Vol 2 Issue 10 • Pages 60 • August 1, 2014 • `100/- • www.eprmagazine.com

THE MOST COMPREHENSIVE ANALYSIS ON ELECTRICAL & POWER

An I-Tech Media Publication

editorial Fuel shortage hits power sector The power sector in India is going through a turbulent phase. Shortage of fuel for the thermal power plants is the most severe issue the sector is tackling with. www.eprmagazine.com

I-Tech Media Pvt Ltd, 15/2, 2nd Floor, Chandroday Co-Op Society, Swastik Park, CST Road, Chembur, Mumbai - 400071. (India) Tel.: +91-22-32682214 / 15 GROUP EDITOR* Subhajit Roy Email: editor@eprmagazine.com EDITORIAL Afreen Sayed ADVERTISING Leeyen Francis Email: leeyen@i-techmedia.com Call: +91-9987375673 SUBSCRIPTION subscribe@eprmagazine.com Telephone: +91-22-3268 2214/15 *responsible for selection of news under PRB Act

Today, power projects worth more than ` 36,000 crore and having total generation capacity of 7,230 MW involving 12 projects are stranded due to shortage of coal. It was also recently reported that 25 coal-based power plants were almost running out of stock!

Another major challenge to the Indian power sector is the shortage of natural gas. Gas-based power plants across the country have been generating only 50 per cent of their installed capacity during the last few years mainly due to inadequate gas availability from muchtouted KG D-6 basin.

In order to view the coal supplies to power sector, the government has formed an inter-ministerial task force to undertake a comprehensive review of existing coal sources and consider feasibility for rationalisation of linkages. The minister informed that the approved recommendations pertaining to rationalisation of sources of consumers of captive power plants, sponge iron and cement plants have been implemented by Coal India and coal companies.

The power producers across the nation look for speedy resolution of the troubles they face.

Though the government said many other efforts are being made for supplying adequate coal to power projects, ensuring time-bound production will ease the demand-supply gap. The government also needs to ensure environment and forest clearances in a time-bound manner.

As the requirement of power is ever-increasing and the government of India is committed to provide electricity to all its citizens, there is a dire need to increase power generation capacity. In this regard, apart from meeting demand of coal- and gas-based power plants, the government also needs to enhance its focus on alternative sources of energies. The government has already set a target of generating 30,000 MW from renewable energy sources during the 12th Five-Year Plan. Also, using solar power to illuminate lights of 400 million Indians by 2019 – is a promise to be fulfilled.

Hope you will enjoy reading this issue as always. Please do send me your comments at editor@eprmagazine.com

Printed and published by Subhajit Roy on behalf of I-Tech Media Pvt Ltd. and printed at Print, Process Offset Printers, B-23, Royal Industrial Estate, 5-B, Wadala, Mumbai-400031 and published from I-Tech Media Pvt Ltd. 1, Gayatri, Karumari Amman, Chheda Nagar, Chembur (West), Mumbai - 400089. Editor: Subhajit Roy All rights reserved. While all efforts are made to ensure that the information published is correct, Electrical & Power Review holds no responsibility for any unlikely errors that might occur. The information on products and services / technology on offer is being provided for the reference of readers. However, readers are cautioned to make inquiries and take their decisions on purchase or investment after consulting experts on the subject. Electrical & Power Review holds no responsibility for any decision taken by readers on the basis of information provided herein. Tel.: +91-22-32682214/15, +91-9821667357

4

August 2014

Electrical & Power Review

28

Cover Story

Cooling tower market: revving up

India is the new upcoming low-cost manufacturing hub after China and also being globally recognised for product performance

20

22 24 26 34

Budget Bytes

Budget pumps energy into struggling power sector

Experts, industry and investors observe that the reeling power sector will find some respite, if the measures announced in the budget are implemented properly

Industry Analysis

Oil & gas industry in India: policy and pricing

38

40

Special Report

Petroleum pricing needs reform and transparency CAG in its recent report said fault in fixing price gave oil firms ` 50,000 crore gain

46

ONE-ON-ONE

India still lagging in innovation

Vivek Kohli, President- Strategic New Business and Projects, Hindusthan Urban Infrastructure Ltd talks about innovation and technology surrounding conductors industry

Tech View

LED vs CFL: who’s better?

A closer look at the advantages of using LEDs over CFLs

Green Zone

THE SOLAR WAR

Trade dispute over domestic content requirement between India and the US continues to grow

EPR Personality

Strategic alternatives to end power crisis

Dr Ashok Jhunjhunwala, Founder of TeNet Group, IIT Madras discusses alternatives strategies to end power crisis

Case Study

Tekla improves offshore efficiency at NPCC Engineering

The project scope consists of 5 new well head platforms and 2 major deck extension on process complexes

Electrical & Power Review

08 54 56

Power Update People Trading Zone August 2014

6

Power Update Tata Power Solar partners with Bajaj Finance Tata Power Solar, an integrated solar player, has partnered with Bajaj Finance Ltd., one of the largest non-banks in India, to provide interest-free EMI options to consumers looking to buy solar products. This national financing tie-up will help make solar much more attractive and an affordable alternative to conventional power sources.

The interest-free EMI option will be applicable to all Tata Power Solar products across various categories including solar lighting products (Tata Solar Venus series having LED/ CFL lights), solar water heaters (Tata Solar Duro Zing and Ultima series) and power packs systems (Tata Dynamo). This option will provide instant credit processing for items below Rs 2.5 lakhs, and will be initiated in the top 20 cities, across 10 states, in the first phase with a country-wide roll out over the next few months.

“We are happy to launch our first consumer financing option with Bajaj Finance. We have ensured that the offer is simple and without any hidden cost,”said Gagan Pal, Vice President – Products, Tata Power Solar. “We are sure that this offer, with its strong financial incentive, will help people find our products very affordable.”

While solar is extremely economical in the long-run, the entire investment is upfront. The interest-free EMI finance has no hidden charges and has a nominal processing fee. The customer needs to pay a nominal initial down payment and the rest can be paid through easy EMIs, ranging from 7 to 10 months.

Speaking on the tie-up, Devang Mody, President – Consumer Finance, Bajaj Finance Ltd said, “We are extremely happy to tie-up with Tata Power Solar. Together we aim to empower consumers by giving them different financial choices for products which can impact their lives.”

Siemens bags ` 52-cr order from NTPC for DCS Siemens Limited has announced that it has won a prestigious order from NTPC Ltd. for approximately ` 52 crores. The order is for supply of state-of-the-art Distributed Control System (DCS) for its 4x210 MW power plant located in Bhagalpur, Bihar. The scope of the project includes the supply, erection and commissioning of control and instrumentation for the complete power plant.

“NTPC Ltd. has been an esteemed long-term customer of Siemens and together it has delivered sustainable solutions for India’s power generation needs. We look forward to more such partnerships in the future,” said Sunil Mathur, Managing Director and Chief Executive Officer, Siemens Limited.

Siemens Limited has also been responsible for the supply and erection packages electrical equipment supply and erection package for three of NTPC’s super thermal power projects: 3x660 MW, super thermal power project at Nabinagar, Bihar; 2x800 MW super thermal power project Stage-I at Gadarwara, Madhya Pradesh; and 2x800 MW, super thermal power project Stage-I at Lara, Chhattisgarh.

Perkins 750 kVA engine delivers fuel consumption benefits The newly released Perkins 4006D-23TAG2, which uses a Diesel Oxidation Catalyst (DOC) after treatment system to meet India’s CPCB II emissions standards, is a mechanical fuel injection diesel engine, specifically designed to meet customers’ critical requirements.

Excellent fuel consumption and dependable power are some of the benefits Indian generator set manufacturers will experience from Perkins’ updated 750 kVA engine offering.

“The 750 kVA prime offering is an

8

August 2014

important node for our Indian customers,” said Simon Gray, Perkins electric power product marketing manager, “So over the last few months, we have enhanced our engine offering, to ensure we are delivering one of the most competitive products available at this key prime node.”

The updated 750 kVA 4006D-23TAG2 ensures customers benefit from a competitive whole life cost, while meeting the newly introduced CPCB II emissions standards. The new engine maintains the space claim of Perkins’

previous CPCB I 750 kVA offering for ease of packaging, and by drawing on the common architecture of the 4000 Series engine family, it uses the same standard spare components, thereby reducing parts inventory requirements.

“In bringing this engine to our Indian customers, we’ve used the most appropriate and efficient technology to not only meet the CPCB II emission norms but to enhance the performance, enabling us to offer our valued customers a competitive product, in all respects,” added Mr Gray.

Electrical & Power Review

Power Update electronica and productronica to take place in Bengaluru this year After a successful 2013 edition that witnessed 11,589 trade visitors, the 15th edition of India’s leading trade fairs on electronic components and production technology this year will be hosted at BIEC, Bengaluru from 23-25 September. electronica India 2014 and productronica India 2014 are the platforms that showcase innovations and provide networking opportunities for the electronics manufacturing industry.

With concurrent conferences, buyer-seller meets, B2G Meets (Business to Government) and exclusive pavilions from IESA, IPC INDIA, LEDMA, CLIK, ELCINA and international country pavilions from China, Germany, Hong Kong, Singapore, Taiwan and UK, it is a perfect meeting point for the industry.

The current edition of electronica India 2014 has participation from industry leaders and visionaries from the electronic components segment. Key players like Rabyte Electronics, Millennium Semiconductor, Murata Electronics (India) Pvt Ltd, Unified Electro-Tech Ltd, NXP Semiconductor, Tomen Electronics India Pvt Ltd, SM Electronic Technologies Pvt Ltd, RS Components, Pvt. Ltd,Schenker India Pvt Ltd and many more will present their latest technologies and product solutions.

BHEL signs MoU for setting up solar power project in Rajasthan Bharat Heavy Electricals Limited (BHEL), Solar Energy Corporation of India (SECI), Sambhar Salts Limited (SSL), Power Grid Corporation of India Limited (POWERGRID), Sutlej

JalVidyut Nigam Limited (SJVNL) and Rajasthan Electronics and Instruments Limited (REIL) have signed a Memorandum of Understanding (MoU) for formation of a joint venture company (JVC) for setting up of a Ultra Mega Solar Power Project (UMSPP) with a cumulative capacity of 4,000 MW in phases at Sambhar in Rajasthan on build, own and operate basis.

The planned first phase implementation of the UMSPP at Sambhar is of 1,000 MW, and the balance 3,000 MW in subsequent phases. This is an initiative of Ministry of Heavy Industries and Public Industries (HI&PE), Ministry of New and Renewable Energy (MNRE) and Ministry of Power (MoP).

The main salient features of the MoU are as follows: • The proposed equity participation in the JVC (in per cent): BHEL - 26, SECI - 23, SSL - 16, POWERGRID - 16, SJVNL - 16, and REIL - 3 • The JVC will be incorporated in Delhi after finalisation of definitive documents • The JVC will be under the supervision of Ministry of HI&PE • The JVC will arrange the entire debt requirement for implementation of various projects.

All modules required during the Phase-I implementation (i.e.

1,000 MW) of the project at Sambhar will be for supply by BHEL on nomination basis subject to the manufacturing capacity of BHEL at that point of time. Besides, BHEL will also have the right of first refusal for supply of solar PV cells and modules during the subsequent phases (i.e. 3,000 MW) of the project, and other projects developed by the JVC. The project is likely to be completed by 7 to 8 years from the date of all the approvals and clearances.

SPEED for clean development The SPEED (Smart Power for Environmentally sound Economic Development) program, an initiative of New Delhi-based, Development Alternatives (DA), harnesses the potential of smart business models to deliver electricity through Decentralised Renewable Energy (DRE)-based power plants in underserved regions of the country; thereby improving the quality of life and enhancing livelihood security.

“Greening” mobile towers There are more than 320,000 telecom towers located in India and they consume

10

August 2014

over 2 billion litres of diesel annually!

SPEED presents an opportunity for the mobile tower industry to cut costs while “greening” their towers through the use of solar energy.

Transforming rural India Diara Rasulpur in Bihar is a cluster of thirty-three villages with a population size of about 30,000 people living in around 5,335 households. Majority of the population in Diara Rasulpur depend on kerosene lamps and wax candles for household lighting. Similar is the story in Bara - a medium sized off grid village in Araria district of Bihar

and Baharayen, a small hamlet located outside a village, in Faizabad district of Uttar Pradesh.

Under the SPEED Program, a 30kW solar power plant has been established at Diara Rasulpur. By March 2014, it has covered 500 households in eleven villages and 5 new microenterprises in one village of Diara Rasulpur.

Similarly, in Bara, a 32KW Biomass Power Plant has been set up to cater to 150 households, micro enterprises, 3 telecom towers and Irrigation loads.

In Baharayen, a 5 KW Solar power plant has been commissioned.

Electrical & Power Review

Power Update HCC’s hydel power project in J&K inaugurated by PM Prime Minister Narendra Modi has recently inaugurated the 240 MW Uri Stage-II Hydro Electric Project (HEP) located in the Uri area of Baramullah District in Northern Kashmir, around 18 kms away from the LOC. Constructed by HCC for National Hydroelectric Power Corporation (NHPC), Uri-II is the second project on the river Jhelum. The project will contribute 240 MW of electricity to the Northern Grid.

On the occasion, Ambuj Jain, Chief Operating Officer, HCC, said, “Overcoming challenges has always been a speciality of our engineers. We triumphed over every obstacle posed by difficult geographical conditions, freezing temperatures and constant floods, with a single objective – to successfully execute this project.”

Despite many challenging conditions, the project team successfully completed the 337 metres long diversion tunnel for facilitating the dam construction in early 2007. The dam structure involving 1,00,000 cubic metres of concrete was completed in March 2011. The construction of the power house and switchyard as well as key tunnelling works was carried out thereafter.

Main features: • Concrete gravity dam is of 52 metres height and 157 metres length with 4 spillways of 9 metre each • Head race tunnel of 4.235 km carries water from the dam to the powerhouse • Four units of 60 MW each designed to generate 1,124 million units of electricity in a 90 per cent dependable year • The power will be evacuated through two lines—Uri-II to

Wagoora and Uri-II to Uri-I • The total installed capacity of NHPC power stations in J&K will go up by 240 MW.

Alstom T&D India to upgrade grid infrastructure in eastern India Alstom T&D India has secured an order from Power Grid Corporation of India Limited (PGCIL) of approximately Rs 2000 million, to supply transformers for the upgrade and expansion of 400/220 KV grid substations across eastern India. The project is part of the eastern region strengthening scheme of Power Grid, which aims to improve the transmission infrastructure in the states of West Bengal, Odisha and Bihar in eastern India. The new equipment will strengthen power handling capacity of various substations across these states, stabilising the transmission network.

Under this contract, Alstom will upgrade existing 400/220 KV substations by installing new equipment such as circuit breakers, instrument transformers, protection and control panels. Alstom will supply 7 units of 400/220 KV, 500 MVA transformers and 3 units of 220/132/33 KV, 160 MVA transformers. It will also upgrade two units of 400/220 KV 315MVA transformers at the Jamshedpur and NTPC’s Farakka substations. Major equipment will be supplied from Alstom T&D India’s manufacturing facilities across the country.

Rathin Basu, Managing Director of Alstom T&D India said,“Alstom is pleased to contribute to the improvement of the power transmission capabilities, both for intra and interstate grids. Our advanced and localised technologies will reinforce the eastern grid, making it more secure and reliable.”

Cyan’s wins second smart metering contract in India Cyan, the integrated system and software design company, has announced that a consortium led by L&T has been selected by Tata Power Mumbai for the deployment of Cyan’s CyLec Advanced Metering Infrastructure (AMI) solution in India. Cyan delivers mesh based flexible wireless solutions for utility metering and lighting control.

Tata Power has spent the past 12 months evaluating the consortium’s technology and following the success of this evaluation, Cyan has now received an order from L&T to provide a complete AMI solution consisting of 865 MHz RF modules, data concentrator units, head-end server software licenses, onsite software installation services and an annual

12

August 2014

software maintenance contract.

The Cyan 865 MHz radio communication modules will be installed inside the L&T smart meters that will be deployed for Tata. The initial contract with Tata is for the deployment of 5,000 consumer meters in a district in Mumbai and is currently planned to go live in early 2015.

John Cronin, Executive Chairman, Cyan, said, “Tata’s selection of the consortium’s AMI technology will act as an important reference for other utilities evaluating smart metering technologies across India. This establishes Cyan as a credible solution for emerging markets.”

Electrical & Power Review

Heat exchange with HX-Factor energizes the world The HX-Factor is our promise. It stands for unique expertise in heat exchange (HX = HEAT EXCHANGE) and clearly defines what lies at the Segment’s core. With GEA air- and hydrogen coolers for generators, charge air coolers, gas preheaters, radiators (fin-fan-coolers) & dry coolers as well as inter coolers and after coolers for compressors – our Segment gives comprehensive coverage of the spectrum.

GEA IHE Systems India Mr. Jayakumar Nair Phone: +91 22 652 98 929, Mobile: +91 98 204 53 979 gmt.hx.in@gea.com, www.gea-hx.com

engineering for a better world

GEA Heat Exchangers

Power Update Sunil Hitech to implement 5 MW solar project Sunil Hitech Engineers Limited (SHEL), a company engaged in development of power and process industries is implementing 5 MW solar project in Maharashtra bagged under Jawaharlal Nehru National Solar Mission (JNNSM) Phase II Batch I on international bidding basis from Solar Energy Corporation of India (SECI) for 375 MW Solar PV projects in open category.

The company is now in the final stages of financial closure.

The project is expected to complete by April, 2015.

The project has been awarded with a highest Variable Grant Funding (VGF) of Rs 1.35 crore/MW, and fixed tariff of Rs 5.45/ KWH fixed for the entire term of 25 years with effect from the scheduled date of commissioning. The total VGF for 5-MW will be Rs 6.75 crore. The VGF agreement and the Power Purchase Agreement (PPA) have been signed with SECI in March. This project is under execution in the state of Maharashtra.

IEX celebrates its 6th anniversary by launching a mobile app Indian Energy Exchange (IEX), India’s premier power exchange, has launched mobile application on the occasion of its 6th anniversary day celebrations. The app, now available for Android device, grants easy access to real-time price and volume information in the Day-Ahead Power Market besides providing information on REC market as well as latest notifications and circulars from IEX. This will help strengthening its connect and engagement with the stakeholders, both existing as well as potential. IEX also plans to launch the app for Apple and Blackberry devices within the next few days.

“This application will empower our stakeholders to access realtime market information-on-the-go. We would continue to set newer standards in terms of simplifying and widening access of our offerings in a cost-effective yet potent way,” commented Rajesh Mediratta, Director-Business Development, IEX. The app offers extensive information on Day-Ahead Market (DAM) in power bid details, market clearing price and market clearing volume; area price and volume; REC markets, circulars, landed cost calculator for open access users etc. The users ned to download the app from IEX website or app stores.

The user registration information will be captured then, and subsequently a communication (email and/or sms) will be sent to user with an activation link/code. This registration and activation is a one-time activity per device.

WEPL builds 50 MW capacity unit in Baramati Welspun Energy Pvt. Ltd. (WEPL), one of the leading builders of renewable energy projects in India, has been building some of India’s largest solar energy capacities in the country.

Following this trend WEPL is now building Maharashtra’s largest 50 MW capacity unit developed under the public private partnership (PPP) model in Baramati. Given the project’s significance, Ajit Pawar, Deputy Chief Minister of Maharashtra accompanied by MP Supriya Sule laid the foundation stone of this project. Welspun Energy is setting up this project in a PPP model with Maharashtra State Power Generation Co. Ltd. (Mahagenco).

ACME to insall Africa’s Li-ion based ESS ACME has recently announced that it has bagged the order for Africa’s first installation of Li-Ion based Energy Storage Solutions (ESS) in African continent for a leading African telecom player and tower company. ACME is one of the leaders in energy management and innovative solutions for alternate energy sector with presence in solar power generation This installation will be done by ACME under its exclusive and strategic agreement with Korean energy storage system giant to manufacture and marketing of lithium ion batteries in telecom, solar power, defence sectors and other allied industries.

This installation marks ACME’s entry into African continent with vast scope of efficient energy storage solutions

14

August 2014

considering the high usage of polluting fuel-based energy generation.

Announcing this feat, Harish Goyal, CEO, ACME said, “This solution is the future of energy storage solutions and holds great prospects for high energy-consuming sectors like telecom, realty, renewables and many more. This green solution has revolutionised the way we store energy by efficiently managing the energy needs.”

While this new-age ESS has a miniscule share in the overall energy storage segment, it will capture 50 per cent share globally in this segment by year 2020. ACME and its Korean partner aim to sale of up to 110 MWh of lithium ion batteries

by FY 2016 in India and African continent.

Electrical & Power Review

Budget Bytes

Budget pumps energy into struggling power sector Experts, industry and investors observe that the reeling power sector will find some respite, if the measures announced in the budget are implemented properly

T

o meet its commitment of providing “24 x7 power to all homes”, the government has proposed many positive steps to boost the power sector. Presenting his maiden union budget, Finance Minister Arun Jaitley has proposed to allocate an initial sum of ` 100 crore for preparatory work for a new scheme “Ultra-Modern Super Critical Coal Based Thermal Power Technology” to promote cleaner and more efficient thermal power.

The Minister comprehensive

16

August 2014

also announced measures for

enhancing domestic coal production with a stringent mechanism for quality control and environmental protection.

“Measures will be initiated to provide adequate quantity of coal to power plants which are already commissioned or would be commissioned by March, 2015 to unlock dead investments,” he said.

In line with the government’s intent on promoting cleaner sources of energy, the ` 100 crore allocation for the adoption of cleaner thermal power technology is indeed a timely proposal.

What would however made this budget

a landmark for the power sector is the proposal to extend a tax holiday for 10 years to power generation and T&D firms who start operations before FY2017.

Minister of State (Independent Charge) for Power, Coal and New and Renewable energy, Piyush Goyal has welcomed the announcement on standardisation of custom duty on coal – across grades and types – to end disputes immediately.

He said, “Our moves for improving coal quality by supplying crushed and washed coal, ensuring adequate coal supply for already commissioned and

Electrical & Power Review

Budget Bytes

I rate the interim budget 8 out of 10 and totally agree with the FM that our domestic manufacturing sector has been under stress and it requires a major boost.

Sanjay Kirloskar, Chairman and MD, Kirloskar Brothers Ltd.

would-be commissioned power plants will unlock dead investments.”

Experts, industry and investors welcomed measures announced by Finance Minister for the power sector.

They observed that the reeling power sector will find some respite, if the measures announced in the budget are implemented properly. Anil Chaudhry, Country President and Managing Director, Schneider Electric India said, “From ` 100 crore allocation for

The investment linked tax incentive is (also) a positive for manufacturing sector

Seshagiri Rao, Jt MD & Group CFO, JSW Steel

Electrical & Power Review

super critical ultra modern thermal power to the rationalisation of coal linkages will facilitate the struggling power producers and put the stranded power plants on a rebound course. The government’s promise to resolve the existing deadlocks in coal sector and provide fuel to all projects coming up before March 2015 will be a massive thrust to get the flailing sector on course to meet the Government’s 12th Plan target of 88,000 MW.” According to Vineet Mittal, Founder President, Solar Power Developers Association (SPDA), “Proposed UMPPs in Rajasthan, Gujarat, Tamil Nadu and Ladakh in J&K with a budget of ` 500 crore is very encouraging. If the govt ensures issues of evacuation, land and availability of the water is taken care of – there will be a lot of players willing to enter this segment.”

G. Sathiamoorthy, Country Manager and MD, Black & Veatch Consulting said, “In line with the government’s intent on promoting cleaner sources of energy, the ` 100 crore allocation for the adoption of cleaner thermal power technology is indeed a timely proposal. What would however made this budget a landmark for the power sector is the proposal to extend a tax holiday for 10 years to power generation and T&D firms who start operations before FY2017.”

Seshagiri Rao, Jt MD & Group CFO, JSW Steel observes, “The 10 year tax

holiday to the undertakings which begin generation, distribution and transmission of power by March 31, 2017 will bring stability in our policy and will help the investors to plan their investments better.”

Sanjay Kirloskar, Chairman and Managing Director, Kirloskar Brothers Ltd. opines, “I rate the interim budget 8 out of 10 and totally agree with the FM that our domestic manufacturing sector has been under stress and it requires a major boost. There are strategic areas where he has laid extra emphasis that will result in a huge fillip to the manufacturing sector.

These areas range from more highways to airports, smart cities, scientific warehousing for agriculture produce, tax sops for new power companies, setting up new industrial clusters, textile clusters to earmarking ` 10,000 crore for startups, investment allowance at 15 opines for 3 years to small manufacturing companies.”

However, KVB Reddy, Executive Director, Essar Power feels, “Coal linkage rationalisation and provision of coal for standing projects and easier mining laws is key for reviving the sector but steps on the ground more important.”

Investors’ paradise!

Finance Minister has emphasised on need to revive growth in the manufacturing sector which is barometer for the economy and has announced various initiatives to encourage investment and employment.

This time special effort is put on training, skill creation to ensure employability for the manufacturing sector. Achal Bakeri, Chairman and Managing Director, Symphony Ltd observes, “FM’s proposal of investment allowance of 15 per cent for 3 years to a company that invests more than ` 25 crore in any year in new plant and machinery will encourage new investment and help generate new employment opportunities.”

“The investment linked tax incentive is also a positive for manufacturing sector,” says Seshagiri Rao.

August 2014

17

Budget Bytes

Proposed UMPPs in Rajasthan, Gujarat, Tamil Nadu and Ladakh in J&K with a budget of ` 500 crore is very encouraging.

Vineet Mittal, Founder President, SPDA

According to Ved Prakash Mahendru, Chairman and Managing Director, Eon Electric, “Investment allowance of 15 per cent for 3 years for companies who are investing more than ` 25 crore in plants or through machineries is a big boost for indigenous manufacturers which will boost investment in indigenous industry to overcome cheap low cost imported products of all kinds including all kinds of consumables and LEDs etc. which are critically needed in the country to boost electric energy saving, the demand for which is growing all round the country for industrial development.”

Focus on renewable The government has also laid stress on solar and wind energy, besides extending tax benefits for thermal power project developers. Terming the Union Budget 2014-15 as

The government’s promise to resolve the existing deadlocks in coal sector and provide fuel to all projects coming up before March 2015 will be a massive thrust

Anil Chaudhry, Country President and MD, Schneider Electric India

18

August 2014

‘transformative’, the power minister welcomed steps for incentivising solar powered water pumps, and setting up of solar parks Rajasthan, Tamil Nadu and Ladakh; and moves for setting up solar plants on banks of canals. “We will also set up Green Energy Corridors for evacuation of renewable energy,” Mr Goyal said.

Solar power equipment manufacturers feel that doing away with inverted duty structure will drive the competitiveness of local manufacturers and lower costs of solar power in India. Tulsi Tanti, CMD, Suzlon Group believes, “The budget proposal to increase clean energy cess from ` 50 per tonne to ` 100 per tonne for financing and promoting will indeed be a major boost for wind energy in particular.”

He adds, “Investment allowance along with continuation of additional depreciation (Total -60 per cent) is also likely to benefit SMEs who would like to invest in the wind sector.” “` 100 crore for the development of 1 MW solar parks on the banks of canals and ` 400 crore for setting up solar power driven pump sets are some unique measures introduced that will further drive utilization of solar energy and reduce our dependency on conventional energy resources,” Mr Chaudhry said.

According to Ranganath NK, Managing Director, Grundfos Pumps India “What came as a surprise is the ` 400 crore allocation for 1 lakh solar pumping systems. This I hope is the beginning of this great initiative in demand side management. There is intent to make things better for manufacturing which can create jobs.”

Strengthening gas infrastructure The government’s proposal of grid expansion for increasing the usage of domestic and imported gas by setting up 15,000 km of additional pipeline to be developed through the PPP mode is being welcomed by the

Indian Inc. However, Mr Sathiamoorthy considers, “The budget was quieter about incentivising the exploration and production of domestic gas that would be used as a feed stock for gas fired power plants that have been in a limbo for the last two years.”

According to K Ravichandran, Sr.VP, Cohead corporate sector ratings, ICRA Ltd. “Utilisation of existing and upcoming gas pipelines could vary with the availability of natural gas, which critically depends upon the faster review of domestic gas pricing along with resolution of NELP related issues.”

Smart move Living upto the BJP’s pre-poll manifesto, the Union Budget 2014 proposed an allocation of ` 7,060 crore in current financial year for developing 100 smart cities in the country.

“The Prime Minister has a vision of developing one hundred ‘smart cities as satellite towns of larger cities and by modernising the existing mid-sized cities,” Finance Minister presenting his maiden budget speech.

He adds, “With development reaching an increasingly large number of people, the pace of migration from the rural areas to the cities is increasing. The new cities should be developed to accommodate the burgeoning number of people. Otherwise, the existing cities would soon become unliveable.”

The development of 100 smart cities is expected to open up opportunities for electrical equipment manufacturing companies and all kind of consumables.

“Modernisation of the cities and the measures laid out for shaping the concept of smart cities is very good news and is considered critical to give the right message to the world of our internal growth and self reliance. It will open up opportunities for electrical equipment manufacturing companies and all kind of consumables,” Mr Mahendru said.

Electrical & Power Review

Industry Analysis

Oil & gas industry in India: policy and pricing

T

he oil and gas industry in India is facing bottlenecks due to existing pricing mechanism.

The newly elected government is planning to revamp the policy and bring-in more transparency. Girish Kumar Kadam highlights the existing pricing mechanisms and expected changes.

Current status The upstream and downstream players have been engulfed in policy logjam with several issues affecting the industry, notably lack of predictability for the PSU upstream companies on subsidy sharing, limited net realisation

22

August 2014

on oil sales post subsidy sharing which does not leave much surplus to pursue risky exploration and production (E&P) projects, significant delays in regulatory clearances for the NELP blocks, controls on gas pricing, uncertainty on the applicability of income tax holiday for gas producers, controls on the prices of sensitive products viz HSD, LPG and SKO for the downstream players and significant delays in the payment of subsidy by GoI resulting in impaired liquidity and high interest costs. In the midstream segment, city gas distribution (CGD) business has also been facing regulatory uncertainty with the industry eagerly awaiting the final

Supreme Court judgment in PNGRB Vs IGL case, pending which investments on new cities have come to a grinding halt.

The natural gas transmission segment has been facing under utilisation of gas pipelines, due to sharp fall in domestic gas production and subdued demand for costlier R-LNG.

Existing pricing mechanisms The existing pricing mechanism for upstream players is ad-hoc in nature, with the PSUs bearing an increasing share of the gross under recoveries as the government has been trying to contain its subsidy outgo in order to keep the fiscal balances under check. This

Electrical & Power Review

Industry Analysis

“It is (also) imperative that the government honours all its obligations under the Production Sharing Contracts (PSCs) signed with oil and gas companies, failing which the domestic private companies and MNCs may not participate enthusiastically in new NELP rounds,” says Girish Kumar Kadam, VP, Corporate Sector Ratings, ICRA Ltd.

policy leaves limited net realisation on the PSUs which are not sufficient to generate cash for pursuing capex towards developing discovered fields.

ONGC and OIL have lined up massive capex in the 12th Five-Year Plan on domestic projects and overseas acquisitions, which would require large amount of debt funding in the absence of healthy cash generation from domestic operations. High reliance on debt could impair their credit quality beyond the threshold level and hence it’s imperative that the pricing mechanism results in a healthy realisation for the upstream companies. With regard to gas pricing, delays in approval of a new formula could impact the progress of new discoveries, especially in deep and ultra deep water fields.

As regards the PSU OMCs, even though they have had to bear only a small share of (0-10 per cent) the gross under recoveries in the recent

Electrical & Power Review

past, their net profits have been wafer thin because of high interest outgo on short term borrowings to cover the delay in payment of subsidy by government OMCs also have large projects in refining, marketing, gas and petrochemicals, which could weaken their credit metrics if high reliance on debt is resorted to.

In the downstream natural gas segment, transmission companies have had to face low pipeline tariffs approved by the regulator PNGRB than they petitioned for. This has resulted in sub optimal returns on the new pipelines, also impacted by lower gas availability.

Some of the tariff orders have also been litigated upon which bring to the fore the need for a practical approach to dealing with tariff design.

Policy measures to bring clarity As the under recovery on diesel has come to a low level, it may be high time to completely deregulate this product. While on LPG and SKO, regular dose of price increase on a monthly basis, on the lines of diesel, could result in manageable level of subsidy outgo for the government even while the consumers don’t feel the pinch of it. However, these measures could

result in elevated inflation in the near term, which the country has to be prepared for, for the sake of longterm sustainable growth. These could lower the subsidy sharing burden on the upstream companies, leaving them with enough surplus to pursue the goal of improving the energy security for the nation through both domestic and overseas ventures. OMCs would also be benefited under this scenario, as the subsidy receivables will be lower as compared to the current levels.

As regards gas pricing, whatever formula the government finally approves that should be remunerative enough for the upstream companies to pursue exploration and development of discovered fields. In the absence of that, reliance on costlier R-LNG will only increase which would put pressure on the BoP position of the country, besides impacting the consumers.

It is also imperative that the government honours all its obligations under the Production Sharing Contracts (PSCs) signed with oil and gas companies, failing which the domestic private companies and MNCs may not participate enthusiastically in new NELP rounds.

August 2014

23

Special Report

CAG in its recent report said fault in fixing price gave oil firms ` 50,000 crore gain

Petroleum pricing needs reform and transparency

C

ontrary to the popular belief that oil marketing companies (OMCs) make huge losses on sale of petroleum products that are subsidised by the government, the audit watchdog Comptroller & Auditor General (CAG) of India claims they have made gains worth ` 50,513 crore between 2007 and 2012.

According to CAG, “The present pricing mechanism of major petroleum products provides for a higher compensation to the refiners. This has not translated into technical advancements and efficiency of the PSU vintage refineries to the desired level. The pricing policy also benefitted private/stand alone refineries by way of compensation for domestic supplies lo

24

OMCs at rates higher than their export realisation.”

form part of the refinery gate price (RGP), which refineries are compensated.

It adds, “OMCs have been unable to control their marketing expenditure lo remunerative levels impacting profitability. However, the manner and time frame in which the compensation pertaining to under-recoveries was being received adversely affected cash flows of OMCs along with attendant ill effects.”

“Addition of these notional elements had the effect of increasing the refinery gate prices for refined-regulated

The pricing mechanism, including notional import related expenses such as freight, insurance, custom duty etc are not actually incurred in production of refined products in OMC refineries.

However, being included in the pricing methodology or price build up, they

Table 2: Estimated cost incurred on import of crude (in ` crore) E l e m e n t IOCL of cost

BPCL

HPCL

Total

LC Charges

29

26

21

76

Insurance charges

18

6

4

28

Freight

5,580

2,043

1,359

8,982

Wharfage 439 charges

184

172

795

C u s t o m s 7,990 duty

2,587

1,633

12,21o

Ocean loss

1,050

511

235

1796

Total

15,106

5,357

3,424

23,887

(Source: CAG)

Contd. to 27

August 2014

g

Electrical & Power Review

EPR PERSONALITY

Strategic alternatives to end power crisis

P

“Decentralised solar power generations especially when DC power is generated directly, is not much expensive than the grid power,�says Dr Ashok Jhunjhunwala, Founder of TeNet Group, IIT Madras

ower cuts continue to plague Indian states. The government has been looking for new methods and technology for uninterrupted power supply that could end rolling blackouts. Dr Ashok Jhunjhunwala has pioneered a slew of technologies in different sectors and now he desires to end power cuts in India. In an exclusive interview with Shahzad Bagwan, he discusses the concept called brownout and methods to prevent power cuts.

What is your take on the current scenario of power shortage in India?

Power shortage has been rising. More can be done to generate required power, but power shortage could still be there. Therefore we need to try to enhance demand and at the same time do a few other things too address the demand-supply gap.

We need to evolve the demandsupply scenario considering details like generation, reduction of demand by increasing energy efficiency. So increasing energy efficiency will also play a major role.

What alternatives do you plan to use to reduce the shortage and how sustainable are these alternatives?

There are three things we are trying to do.

Firstly, to significantly increase energy efficiency we are using direct current (DC) powered light, fans, chargers for electronic products so that power

26

August 2014

wastage can be significantly be reduced.

In volumes none of these solutions are more expensive. In comparison to CFL lightning LED is expensive but LED has a higher life span. The other DC solutions are not expensive than the AC solutions so are sustainable.

Secondly, we are talking about decentralised solar power generations.

Decentralised solar power generations especially when DC power is generated directly, is not much expensive than the grid power. It is equivalent to the similar charges for grid power which is around ` 5 per unit so again it is sustainable. If it is installed by individuals and if the direct output is DC, then it is extremely beneficial.

The third important step is we are trying to bring in the concept of brownout, where there is limited amount of power supply during power shortage. The power cuts are never 100 per cent but 85-90 per cent. The remaining power gets converted to DC and continues to feed DC while AC is cut off. Now that requires a small amount of investment, the amount of investment is small at the end of the power distribution company; it will be ` 300-500 per home.

For a home-owner it will cost around ` 1,000 which is a small price to pay for uninterrupted power supply. It also far better than the current UPS or inverters which use battery.

According to you what are the areas which need improvement?

For light, fans and electronic products

Electrical & Power Review

EPR PERSONALITY we can almost cut the power uses by a factor of two so to get a huge gain. As far as solar power is concerned, I think it is possible to generate probably 3040 per cent of power required for light, fans and electronic goods. Therefore to that extent that power is saved.

As far as the uninterrupted power is concerned we are talking of very small amount of power - 10 per cent of the power to be continued to be saved. The advantage that we get with uninterrupted power is larger.

With the use of these alternatives how can we meet the demandsupply gap?

By decentralised solar power generations we can enhance the power supply. If 100 million homes generate 1KW of power it will result in 100GW power generation which is 40 per cent of today’s peak power generation. So we are talking about huge increase in supply side of power generation.

Contd. from 24

On the demand side, conversion of lights, fans and electronic goods to DC will result in demand side deduction which is another way to bridge the demand-supply gap. Where uninterrupted power is concerned, it does not change the demand-supply gap; even in the power cut it keeps minimum power at home and therefore is of high social value.

What is your comment on running solar energy with DC combination?

petroleum products at a price lower than the price at which the OMCs buy from them.

refineries on the same count was ` 1,428 crore during 2011-12, CAG observed.

As soon as we start providing uninterrupted power supply using DC power line to home, it will give a huge incentive for people to put their own solar generator because they no longer have to do conversion of solar. One just has to buy a solar panel, which is easy and cost effective.

f

products processed in OMC refineries by ` 50,513 crore,” said the CAG. The notional charges are insurance charges, letter of credit charges, ocean loss, wharfage charges, and basic custom duty, among others (table 1).

Out of the ` 50,513 crore, the most significant element is the custom duty which accounts for 56 per cent (` 28,544 crore) of the total impact.

Even after deduction of relevant expenses incurred in import of crude oil during 2007-12, OMCs ought to have benefitted by ` 26,626 crore ( ` 50,513 crore from table 1 minus ` 23,887 crore from table 2).

OMCs uplift petroleum products from standalone or private refineries in order to fill the gap between production and domestic requirement at refineries import-linked prices (RGP). Private refiners, however, export balance

Electrical & Power Review

Procurement at trade parity price (TPP) or import parity price (IPP) affords an undue benefit to private refiners, which was estimated at ` 667 crore on HSD (high speed diesel) in only one year, i.e.

2011-12. The benefit to stand alone PSU National elements included in the price build up of regulated products (in ` crore) E l e m e n t IOCL of cost

BPCL

HPCL

Total

LC Charges

988

384

256

1,628

Insurance 388 charges

154

101

643

Freight

9,335

3,444

2,380

15,159

Wharfage charges

817

315

211

1,343

6,982

4,461

28,544

C u s t o m 17,101 duty Ocean loss

1,928

766

502

3,196

Total

30,557

12,045

7,911

50,513

Table 1: Data of national elements added to FOB as furnished by OMCs (Source: CAG)

CAG also pointed out that pricing mechanism at the refinery gate was intended as an incentive for upgrading the technology of existing refineries and to attract investment in the refinery segment for improvement of efficiencies. “While OMCs have mode some investments in their existing refineries for technology up-gradation, study of a sample indicates that there is still a significant gap in the performance of these refineries and there is a need for further technology upgradation,” it said.

So, the time has come to review the existing methodologies. Apart from recommending a “transparent burden sharing mechanism”, the CAG has asked the government to ensure that the pricing mechanism does not unduly benefit private refineries through the existing practice of compensation.

August 2014

27

COVER STORY

Cooling tower market: revving up C India is the new upcoming low-cost manufacturing hub after China and also being globally recognised for product performance

ooling towers represent a relatively inexpensive and dependable means of removing low grade heat from cooling water. They play critical roles in many industrial plants. The make-up water source is used to replenish water lost to evaporation.

Industry overview Cooling towers are heat transfer equipment used to cool the water which is used in any process equipment. Water is cooled by evaporation technique and cooling rate and temperature depends on the evaporating rate. The cooling tower industry is set to grow in relation with the other beneficent industries expanding in the coming years.

The cooling tower industry is spread to industries including power plants, petroleum refineries, petrochemical plants, natural gas processing plants, food processing plants, semi-conductor plants, and for other industrial facilities etc.

According to S. Bansal, Director, Paltech Cooling Towers & Equipments Ltd, “Due to massive urbanisation and industrialisation, cooling tower market scope is widening up in India.

There are around 40 cooling tower companies in India ranging from small, medium and large capacity cooling tower manufacturers. A few foreign companies have also entered to cater large capacity cooling towers.�

Commenting on the market share Rajesh Varma, CEO, R K Aircon Industries says, “The market size of cooling towers is all set to rise up to $1.8 billion globally by 2015. India is

28

August 2014

Electrical & Power Review

COVER STORY taking approximately $0.45 billion of the global market.”

Commenting on the market size of the cooling tower industry in India Biji Kuriakose, Managing Director, SPIG Cooling Towers India Pvt. Ltd. states, “Industrial engineered cooling tower industry will be around ` 2,500 crores annually in Indian market.”

Growth drivers India has emerged as one of the fastest growing economies in the world. Its current economic performance reflects a healthy trend based on increased consumption. The government of India has identified the power sector as a key sector of focus to promote sustained industrial growth. Therefore triggering growth in the cooling tower industry.

“Major growth driver for cooling tower industry is Indian power sector, oil and gas sector and steel industries in particular. With energy being a scarce resource, there is a tendency towards energy savings and this will drive the cooling tower industry strongly.

Replacement of old cooling towers and innovation in new product designs with value-added functional features and benefits will propel the market forward,”says Mr Bansal.

Mr Varma observes, “Greater customer confidence, improvements in macroeconomical environment, focus on

Though the advanced technologies were introduced in cooling towers, many PSU’s still have a mind block in accepting these betterments

Biji Kuriakose, Managing Director, SPIG Cooling Towers India

Electrical & Power Review

energy efficiency, increase in commercial building construction and investment in infrastructure are expected to be the major market drivers.”

Besides, upcoming thermal power plants, cement sector, petrochemical, refineries and semiconductor plants, drug and pharmaceuticals to drive the growth.

“Present market will tend to veer toward replacement, repair and innovations based on new product design with saving of energy and water will propel the market forward. Focus on nuclear power plant construction in India and China is expected to grow,” Mr Varma further adds.

Innovative technology Innovations in technology is a must for all companies in every sector. With innovations in technologies companies can increase efficiency and also save energy by using advance cooling equipment in the cooling towers.

Cooling towers currently are coming up with new technologies in pultruded FRP structures and cladding to meet the demands of the users.

Mr Kuriakose says, “Industrial engineered custom-built cooling towers are engineered to utilise the best technological advancements in cooling tower components emerging worldwide viz., composite drive shafts, pultruded FRP profiles for tower structure, pultruded profiles for fans, most importantly the improvements in cooling tower heat transfer media allowing higher TSS of circulating water.”

Commenting on the technology factor Mr Varma says, “Some of the technologies include controlled or minimum water evaporation and drift losses, selection of energy efficient fans and use of FRP pultruded sections. We believe in innovative products involving new design, using technologies for saving time and energy, moving along with automation and quality product.”

One area that could be taken up for immediate indigestion is going beyond our conventional cooling towers designs and material of construction.

S. Bansal, Director, Paltech Cooling Towers & Equipments Ltd

However Mr Bansal states, “One area that could be taken up for immediate indigenisation is going beyond our conventional cooling towers designs and material of construction. Although most of the industrial giants opting for air-cooled condensers which is alright. Indian cooling tower industry is unable to introduce pultruded FRP cooling towers in a big way which is an alternative for traditional concrete and wooden cooling towers.”

Meet market demand Ability to meet the demand is an important factor for any industry.

Indian cooling tower contractors have indigenised their manufacturing setups with the availability of state-of-theart manufacturing and construction facilities. However, experts believe, production capabilities available in India are enough to meet the demands for the present as well for the future.

According to Mr Bansal, “Indian cooling tower industry has been able to meet the present demand and is expected to be in position to meet the future demand for natural draft as well as induced draft cooling towers.

It is assumed that Indian cooling tower industry does business of approximately ` 1,000 crore annually.”

Mr Varma observes, “India is the new upcoming low-cost manufacturing hub after China and also being globally recognised for product performance.

August 2014

29

COVER STORY

The market size of cooling towers is all set to rise up to $1.8 billion globally by 2015. India is taking approximately $0.45 billion of the global market.

Rajesh Varma, CEO, R K Aircon Industries

We presently take a stake of more than 25 per cent of total share of global market and we certainly are capable to meet the challenges and competition in the market.” The company targets to attain 50 per cent marker share.

Challenges in growth Cooling towers require huge amounts of water for cooling purpose and availability of large amounts of water in India is a major concern. Also the industry lacks professional expertise in maintenance and handling of cooling towers. The cooling tower industry faces major challenges in these aspects.

The hesitance by users to adopt new designs and concepts is one of the major challenges faced by the cooling tower industry.

According to Mr Varma, “Resourcing the required water in India is the major challenge before the end-user and government. As thermal power plant are the major consumer of cooling towers, they need large quantities of water for cooling and that too from a constant source.”

He further adds, “Other hidden challenge is the supply and demand of semiskilled technician which is alarming. Sustaining the nourishing/ trained unskilled labour to skilled labour is a bigger challenge. Educating the end-user about quality, performance as finally the order is majorly finalised by the non-technical or commercial department. Also, government policies on import play a major role for Indian cooling tower manufacturers for raw material prices.”

Speaking on the challenges Mr Bansal says, “The major challenge and hindrance that cooling tower industry is facing is the consumption for water.

Thermal power plants for instance consume large quantities of water for cooling and there needs to be a constant source. Shortage of labour is another major issue that manufacturers have to contend with for construction of large capacity RCC cooling towers. High cost of sand, metal, cement is also a very big concern in the coming days.”

Lack of infrastructural developments and setbacks in major power projects greatly affected the sustainability of cooling tower industry. “Though the advanced technologies were introduced in cooling towers, many PSU’s still have a mind block in accepting these betterments due to lack of their confidence and experience,” observes Mr Kuriakose

Operation and maintenance Maintenance of cooling towers is very important for a smooth and efficient working. Maintaining the right temperature and water treatment for cooling is essential. Also the cooling tower industry faces lack of professional support in operations and maintenance.

Mr Bansal also believes, “The major challenge in operation and maintenance of cooling tower is non-availability of technical expertise.” When desired temperature is not achieved by cold water then production loss is suffered by the owners.

Mr Varma points out, “Cooling tower maintenance is being kept as the least priority by majority end-users.

Proper training to technicians is not provided for operating, maintaining and monitoring performance of cooling towers.”

L&T Infotech named a ‘major player’ in oil and gas industry L &T Infotech has been named a ‘Major Player’ for providing professional services to oil and gas industry in the IDC MarketScape report.

The ‘IDC MarketScape: Worldwide Oil and Gas Professional Services 2014 Vendor Assessment’ report dated June 2014 highlights on the “pedigree that L&T Infotech has, in particular in instrumentation,

30

August 2014

engineering, and construction, (that) will become even more useful in the future in informing IT for automation and capital project management.”

It further points out on the “successful governance approach” followed by L&T Infotech, in addition to its aim to reduce professional service costs for its oil and gas clients.

“L&T Infotech has demonstrated it works well with the industry and has developed frameworks in conjunction with its clients,” according to Ms. Jill Feblowitz, Vice President, IDC Energy Insights. “Of particular note are frameworks in digital oilfield readiness and petro-technical data management. L&T Infotech aims to reduce professional service costs for its oil and gas clients, and it shows. ”

Electrical & Power Review

Case Study

Tekla improves offshore efficiency at NPCC Engineering

Although the project had time constraint, NEL managed to achieve defined results in relatively short period with the help of versatile Tekla software

T

he offshore company NPCC Engineering Ltd (NEL) is a joint venture of NPCC, Abu Dhabi and Arcadia Shipping, Mumbai, carrying out design and engineering activities for oil and gas upstream industry. NEL’s Quality Management System (ISO 9001:2008) is certified by BUREAU VERITAS and it has carried out several design and engineering projects of new well head platforms, subsea pipelines and topsides modifications on well head/process platform.

NEL had a task to create well head platforms at WO-16 and SB-14 cluster

34

August 2014

field located at South East of SH process complex of Mumbai High Field in water depth of 75 to 80 metres. The project scope consists of 5 new well head platforms and 2 major deck extension on process complexes. NEL was already equipped with high-end software needed for oil and gas upstream projects such as PDS, PDMS, STAAD, Sacs and Caesar.

There was need to have 3D software to handle their all structural needs start from concepts to engineering, detailing, fabrication to erection. After extensive evaluation and anticipating upcoming

challenges NEL decided to switch from traditional 2D based platform to 3D BIM based process and technology. NEL chose Tekla and decided to implement the software in this fast track green field well head platform project.

WO-16 Cluster & SB-14 Wellhead platforms project This project is a new well head platform which is supported on four legged fixed jacket structure with two legs having single batter and other two legs have double batter. Jacket is made of tubular sections, welded together, and it is anchored in seabed with main or

Electrical & Power Review

Case Study skirt piles. Jackets have spider deck at top level and have diagonal bracing in all faces connecting horizontal framing levels. It also includes boat landing, buoyancy tank, anodes, riser, skirt pile guide and lifting or upending trunnion etc. Maximum jacket weight is 2,100 MT. The platform top side consists of subcellar deck, cellar deck, main deck and aluminium helideck. Top side also includes building module, vent boom, crane pedestal, solar panel supporting platform, well head access platform, walkways, stairways, ladders and railings. Maximum topside weight is 1,900 MT.

Complexity handled with ease NEL structural design team worked based on the requirements of client and came up with relevant technical and design issues to be developed and incorporated in the Tekla model.

Tekla technical support team and NEL design team worked together during development and customised few tools as per the project requirement. Although the project had time constraint, NEL managed to achieve defined results in relatively short period with the help of versatile Tekla software and the excellent

implementation support provided by the Tekla team, the company claims. In the process of project execution Tekla local support team got feedback on a few small requirements of offshore industry incorporation. This can further fine tune Tekla offerings to all offshore players.

Interoperability towards success

contributed

The design and modelling of the structure was done with the Tekla Software right from the early stage.

Modelling began with the main steel and secondary steel structure as soon as the calculations were completed with SACS. The model is completed later with all the tertiary elements such as the connecting plates, equipment supports, access platforms, padeyes, stiffeners, node plates, cut outs and penetrations as the vendor information was made available. The robustness of the software in dealing with the changes was beneficial in the overall smooth execution of the project.

Tekla and Trimble Tekla was established in 1966, and today it has customers in 100 countries, offices in 15 countries, and a global

Other salient features of Tekla that can help on a fast- track project • Easy to learn and implement • Tekla Structures allows simultaneous access by multiple users to the same model • Web-link facility allows engineers to review the model simultaneously as it is getting developed • Tekla Structures users can streamline the design and fabrication processes, ultimately ensuring the highest level of quality in project deliverable • Free tools Tekla BIMsight for every NEL team member involved in projects to communicate collaborate with others.

Electrical & Power Review

partner network. Since 2011, Tekla has been a part of the Trimble Buildings Group.

NEL received benefits:

following

• Generating detailed structural material take off list very quickly and accurately during design phase of job • Monitoring weight of the structure and the position of the deck structures centre of gravity during the design phase • Direct output of 2D drawings to present to the end user or client and the relevant authorities for approval or certification purposes thus reducing human errors and checking time drastically • The software allows user-friendly interface with Piping or E&I models in PDS for reviews and complete clash free structural model • Import of main steel frame directly from analysis software SACS • Using Tekla 3D structural model for regular design review kept it fully coordinated from any conflicts with the equipment, piping, cable trays and access routes.

Trimble group’s solutions tightly link office-based process and information with the field crew. Trimble designbuild-operate platform responses to the needs of owners and the AEC industry by increasing productivity and reducing rework.

Tekla BIMsight Tekla BIMsight is a free professional tool for construction project collaboration. Anyone can combine models, check for clashes, mark-up and share information using the same easy-to-use 3D environment. With Tekla BIMsight project participants can identify and solve issues already in the design phase.

August 2014

35

Industry Analysis

Mini-grids are solution to power woes in rural India: CSE Renewable energy based mini-grids can be a possible solution to meet the electricity demand of vast rural population of India while simultaneously addressing climate change issues

A

round 79 million households in India have no access to electricity in India and more than 74 million out of those live in rural areas.

According to New Delhi-based think-tank Centre for Science and Environment (CSE) decentralised distributed generation or mini-grid projects can help provide electricity to these rural households sustainably.

These projects should be made bankable and investor friendly and be provided with performance-based incentives to make them sustainable in the long run, observes CSE.

36

At a workshop on “Sustainable MiniGrid for Energy Access” in Delhi, CSE has discussed the role mini-grids have to play to eradicate energy poverty in the country and proposed a model to ensure at least 12 hours of electricity to every household per day.

“Mini-grid or decentralised generation of power offers exciting possibilities of reducing India’s energy poverty,” said Chandra Bhushan, Deputy Director General, CSE. Energy access in rural India has been a development priority for the government for many decades. But 45

per cent of rural households still lack access to electricity, even though power generation in the country has grown at a rate of 7 per cent between 2002 and 2013. There are still around 77.5 million households in India who are dependent on kerosene for lighting. Out of these, 93.6 per cent belong to rural India.

At the workshop, CSE showcased a mini-grid model and released its recommendations on policy reforms.

Emphasising the need to scale up minigrid development in the country, CSE demanded clarity in mini-grid definition.

Though generation capacity is growing in the country at 7 per cent (mostly Contd. to 39

June 2014

g

Electrical & Power Review

ONE-ON-ONE

India still lagging in innovation

F

“The government shall encourage industry for innovation and development of products by giving incentives,� observes Vivek Kohli, PresidentStrategic New Business and Projects, Hindusthan Urban Infrastructure Ltd

rom being a small industry 20 years back the wire and cable industry has leapfrogged to become a very large industry.

Growth is a clear indication that Indian cable companies are innovating and embracing state-of-the-art technologies.

In an exclusive interview with EPR, Vivek Kohli, President- Strategic New Business and Projects, Hindusthan Urban Infrastructure Limited talks about innovation and technology surrounding conductors industry. He also discusses where the industry is lacking in terms of innovation and technology.

What makes unique?

your

company

We are one of the leading manufacturers of ACSR, AACSR, AAAC, AAC, and HTLS conductors in the country. We are in the service of the nation since 1959 and have supplied more than 500,000 kms of conductor. We have been catering to the needs of all the electricity boards, power utilities and exporting conductors to more than 23 countries. We have been supplying over head transmission line conductors from 1959 onwards and exported first conductor in 1961. In the last 16 years itself, the company has manufactured and delivered conductors in excess of 240,000 km which is an equivalent of 6 times the circumference of the earth.

When it comes to your product, what would you regard as major technological milestone?

We have a presence in all types of conductors like ACSR, AAAC, AAC, and AACSR for 400 KV/500 KV/765 KV/ 800 KV HVDC transmission lines to

38

August 2014

various utilities including Power Grid Corporation of India. We are poised to supply conductors in ultra high voltage lines for 1,200 KV in future.

We have developed high performance conductors called HTLS Conductors (High temperature low sag ) like TACSR, ZTACIR (STACIR), ACSS, ACSS (TW) and GAP TYPE (GTACSR, GZTACSR). We have tied up with two leading European companies having several years of experience in HTLS conductors for technology and project support.

What kind of innovative safety features your products have?

Our continuous and systemic efforts have led to very high level of quality and safety standards in all our products and are recognised with award of ISO9001:2008, ISO: 14001:2004 and ISO: 18001:2007 certificates by BVQI. Our products are well approved in Europe and have necessary approvals in place for Nordic countries and in National grid of UK. All our products are safe and are regularly tested in international laboratories. We provide world-class manufacturing as well as innovative packaging solutions which passes through all safety standards for Europe and US standards. When our products are used in various projects at national or international level, the customers find it extremely performing product without any safety as well as quality issues.

Where does the Indian industry lack when it comes to innovation and technology?

India lags behind in the level of

Electrical & Power Review

ONE-ON-ONE innovation and technology from many countries. The need is that the industry must upgrade continuously in terms of innovation and technology. The government shall encourage industry for innovation and development of products by giving incentives. The regulatory bodies must invite industry and assess industry development programme and the impact it has made and then make necessary changes to promote high performing products. This shall also help industry to bring in new technologies at a faster rate.

Currently, the country lacks in guidelines on use of new technology.

We typically focus on lowest price for competitive bidding. This government can incentivise those who develop, innovate and suggest new products and bring in new ideas to promote newer Contd. from 36

technologies .It is recommended that policies be redefined in the areas of creating green solutions in transmission sector. At the time of conceptualisation of transmission project itself, various bodies can bring in new ideas to promote new technologies and promote ideas that can take care of future needs and bring down per unit transmission costs.

To share your article or case study in this section, write us at editor@eprmagazine.com Next issue focus: l Renewable l Automation l EE Motors

Are there any new products and technology developments in the pipeline?

We have a very strategic development plan for new products and currently at the advance stage in bringing in new products other than HTLS conductors.

We are working very closely in some R & D projects for development of materials as well as breakthrough technology that can bring in revolution in transmission industry.

f

coal based), consumption is growing even faster due to rapid infrastructure growth in urban and semi-urban areas.

Therefore, grid powers from largescale coal-based power plants (for that matter, other renewable energy based large scale power plants too) are unlikely to reach rural India to provide energy on demand. On the other hand, renewable energy based mini-grids can be a possible solution to meet the electricity demand of vast rural population of India while simultaneously addressing climate change issues as well.

Various renewable based mini-grid models have emerged in India. They have been able to set examples of how mini-grids can end energy poverty in India. But mini-grids developed so far in the country are facing several challenges due to high capital and operating costs, high tariff and inconsistent revenue collection, low demand in the villages, and bureaucratic delays etc.

Tariff mechanisms for mini-grids “In order to make energy access through mini-grid a reality, we need

Electrical & Power Review

Besides the policy changes, CSE also proposed a model to make the operation of mini-grids sustainable.

CSE divided the energy poor into two categories: • Grid connected rural areas (not receiving at least twelve hours of electricity in a day) and; • Remote villages and hamlets not connected to the grid.

minimal rate for the power they use.

The choice of technology can be left to the developer. The idea is to develop a mini-grid of large scale that can act as a tail end generator. The developer can export the surplus power back to the national grid.

Remote villages will not come under the purview of DISCOMs under normal circumstances, says CSE. Generation based incentives (GBIs) on the basis of the number of units generated or viability gap funding (VGF) for developing mini-grids in this region has been another suggestion from CSE.

According to CSE, in the grid connected villages, the mini-grid has to co-exist with the main grid, so that villagers receive reliable power on demand.

Mini-grids in such situations must act like a franchise to the DISCOM, or the electricity distributor. Using reverse bidding, renewable energy based mini-grids would be set up for a cluster of villages to ensure minimum supply of twelve hours of electricity.

The developers will receive feed-in tariff (FiT) and the villagers will pay a

One of the key issues that emerged in the workshop was, what happens when the grid reaches the village. “We suggest that when the grid reaches the mini-grid in a remote village, they can become interactive with each other.

The consumer can pay the tariff of conventional energy and the difference can be paid as feed-in tariff by the discoms. The money for the feed-in tariff can come from sources like the National Clean Energy Fund,” said Mr Bhushan.

a simple but robust model to provide reliable electricity to villagers,” said Nayanjyoti Goswami, programme director-renewable energy at CSE.

August 2014

39

tech view

LED vs CFL: who’s better?

A closer look at the advantages of using LEDs over CFLs

T

he decision between LED and CFL is often discussed by users. While CFL lights hold an upper hand when it comes to comparison with incandescent lighting, LED lights are giving a tough fare of competition to CFLs. Energy experts agree that the incandescent bulb is rapidly becoming a thing of the past. CFLs are soon replacing the highly efficient LED lights. As the world gears up to be more environment friendly CFL lights will be a story of the past.

Currently LEDs are outdoing CFLs for its high efficiency and low power consumption.

Preference LED lights are preferred over CFL lights because of the high life span, ability to consume less power and much more.

While LED lights are more expensive general consumers prefer using CFLs over LEDs. With new technological

40

August 2014

advancements and large scale production LED lights will soon take over CFLs in the pricing concept.

Speaking on the options in lighting Ved Prakash Mahendru, CMD, Eon Electric Ltd says, “Barring the cost per bulb, LEDs are better than CFLs in every way.

LED lights cost anywhere between `200 and ` 300 per piece, while CFLs are available for ` 100 a piece. But with LED lights being twice as energy-efficient as CFLs, some of these higher costs are offset with long-term use. Mass production will ensure economies of sale, making LED lights more cost effective and popular than CFLs in the long run.”

LED based lighting is a new technology and is 50 per cent more energy efficient than CFLs. LEDs have a longer life than CFLs, theoretically they can last up to 50,000 to 60,000 hours, but as of now industry is assuring life of 20,000 to 30,000 hours.

Nikhil Malhotra, Country ManagerIndia, GlacialTech says, “LED is better than CFL, with advancements in manufacturing technology LED bulbs will be more cost-effective than CFLs or incandescent bulbs. A well built LED light can maintain 70 per cent of its brightness even after 50,000 hours. LED bulbs or lights have higher efficiency

The main reason for growth of LEDs is the greater levels of energy savings achieved, exceptionally longer life than CFLs and faster ROI.

Arun Gupta, Global CEO, NTL Lemnis

Electrical & Power Review

tech view for converting power in to brightness and it will save 50 per cent of electricity bill over CFL. These bulbs are currently the most expensive lighting choice, but they have the longest lifespan, lasting nearly 25 times longer than ordinary incandescent.”

related issues as no single company has any patents over the designs or the manufacturing process. LEDs, on the other hand, currently have lot of IP related restrictions; hence there are a lot of limitations to LED wafer and chip packaging and manufacturing.”

“Consumers are yet to understand benefits of LED and adopt them.

The major momentum is only in the applications which have more than 8 hours to 24 hours usage, like street lights, BPOs, IT and ITeS companies etc.

The main reason for growth of LEDs is the greater levels of energy savings achieved, exceptionally longer life than CFLs and faster ROI.” says Arun Gupta, Global CEO, NTL Lemnis.

Commenting on the environmental impact Mr Mahendru states, “LEDs are RoHS (Restriction of Hazardous Substance) compliant, while CFLs are not, due to the presence of mercury.

The RoHS directive seeks to restrict dangerous substances commonly used in electronic equipment such as lead, cadmium, mercury, hexavalent chromium, poly-brominated biphenyls, and poly-brominated diphenyl ethers.”

Environmental Impact

He further adds, “Carbon dioxide emissions that contribute to global warming and climate change are the lowest in LEDs at 451 pounds/year per unit of power consumed, with these being 1,051 pounds per year in CFLs. The lower energy consumption also decreases CO2 emissions, sulfur oxide and high-level nuclear waste.”

While we know LEDs are more efficient consume less power than CFLs. CFLs are cheaper while LEDs are expansive also LEDs have a longer life span compared to CFLs. However when it comes to the impact on the environment, CFLs have a greater impact due to the presence of mercury which is a hazardous component having adverse impact on the environment.

Mr Gupta says, “CFLs contain small amount of mercury and electronic waste, due to which disposing them is an issue. LEDs on the other hand are eco-friendly, as they do not contain mercury. CFLs do not have any IP

Carbon dioxide emissions that contribute to global warming and climate change are the lowest in LEDs

Ved Prakash Mahendru, CMD, Eon Electric Limited

Electrical & Power Review

Demand pattern Currently the demand for CFL lights is much higher than LEDs because of its low price as compared to LED lights. However with some government initiatives and as people become more aware about the environment the demand for LED lighting is set to rise.

With large scale production of LED lights the price gap between LED and CFL is set to decrease and LED will gain momentum in the coming years.

Mr Mahendru observes, “At this point of time, CFL enjoy widespread usage in India since these came into use less than a decade ago. But as there is increasing environment consciousness across the country, and awareness that CFLs contain hazardous mercury, there will be perceptible shift to LED lights soon.”

He further adds, “With many corporates increasingly spending on their CSR outlays, it makes sense for

LED has immense business potential brewing in the Indian lighting market due to power shortages and high electricity cost.

Nikhil Malhotra, Country Manager- India, GlacialTech

public and private entities to include switchover from CFLs to LEDs as part of such initiatives in the years ahead.

Such a switchover is bound to gain increasing attraction. This will see rising demand for LEDs, with prices falling progressively, while CFLs will gradually be phased out, as its being increasingly observed in progressive countries in Europe and US.” According to Mr Malhotra, “The market in India for LED-based lighting is evolving at lightning speed, with the rapidly increasing awareness about LEDbased lighting products. The demand for the same would continue to do so in the days to come. LED has immense business potential brewing in the Indian lighting market due to power shortages and high electricity cost.”

As the demand for eco-friendly lighting products grows, the production volume will also increase and the economies of scale will come into play, therefore the ‘per unit’ cost of the LED lamps will surely come down drastically. However the major reduction in prices will come from technological advancements.

“The government by offering subsidies is trying to get people to convert to efficient sources of lighting like CFLs as well as LEDs. And people are starting to make an effort to change and when the time comes, Indian government, will also look at passing laws to ensure that energy is optimally utilised,” concludes Mr Gupta. n

August 2014

41

Industry Analysis

LED leading the way LED lighting industry is in the evolution stage and is expected to reach its peak in around 10 years time

L

ight emitting diodes, commonly called LEDs, are becoming more and more widespread in all formats ranging from small flashlights to laptops, cellular phones, and televisions. LED lighting industry

has reached a point where it is replacing the conventional lightings such as incandescent and fluorescent bulbs.

LED lights are considered to be energy efficient then the conventional lights in the market.

Current status

The Indian market for LED lighting is expected to grow to $400 million by 2015 making it one of the fastest growing sectors.

Sumit Joshi, Marketing Head, Philips Lighting

42

August 2014

LED lighting industry in India is still at an emerging state. A lot of growth and advancements are expected in the LED lighting sector with a number of companies entering the LED segment.

As of now consumers are getting attracted towards the LED concept because of its various advantages and low power consumption.

According to Sumit Joshi, Marketing Head, Philips Lighting, ‘’The LED industry in India is still at its preliminary stages, but is growing at a very fast pace.

With advancements in technology and

lighting going digital, consumers are seeing tremendous potential in the LED lighting segment. The fact that LEDs offer limitless opportunities with their compatibility with controls, and play of colours make them the one stop solution for all lighting requirements.”

LED Lighting products have already been acknowledged as the most ideal, economic and highly efficient sources of light providing maximum lumens of light per watt or per unit of power consumed. Ved Prakash Mahendru, Chairman and Managing Director, Eon Electric Ltd comments, “Some wizards even risk to say that LED Bulbs will soon be so efficient that a 1 watt LED Bulb may give more lumens than a 20 watt CFL and will sell at the same price as the 20 watt CFL, providing the same amount of lumens of light and yet save human beings from the hazards

Electrical & Power Review

Industry Analysis Upcoming Trends Though the LED industry is at its initial stages of growth but when it comes to the upcoming trends in LED lights it is transforming at a fast pace with new trends in technology. Soon LED lights could be adaptable in all sorts of needs. Increased awareness on green is also driving market towards energy efficient lighting solutions. Opportunity in energy efficient lighting is large as we see clear trend on investment in green buildings.

of mercury which is an integral part of CFLs.” According to Nikhil Malhotra, Country Manager, GlacialTech, “Global LED lighting market is likely to grow at a CAGR of 35.6 per cent over the period 2016. Adoption of LEDs in India could significantly reduce lighting load, excessive demand and overall energy consumption. For a country like India the biggest benefit of LED lighting is energy saving. Currently, the Indian LED market is worth $ 143 million, which is expected to touch $ 1279 million by 2018.’’

Continuous dip in prices of LED products and increasing income has made LED products more affordable due to higher volumes.

Anil Bhasin, Sr. Vice President, Havells India Ltd

Electrical & Power Review

Commenting on the trends Arun Gupta, Global CEO, NTL Lemnis says, “LEDs with higher efficacy are commercially available to be used in different products.

New and innovative heat sinks are getting designed by the manufacturer which can dissipate more heat from a compact surface area. Plastic housing in place of metals is increasingly being used by the manufacturers in retrofit lamps.”

He further adds, “Mood Lighting allows you to create multiple moods during set times of the day. Different colour schemes are required at different set of times during the day. LEDs can produce different colours which are very important for the hospitality sector where ambiance plays a critical role.

Dimmable LED lights are great for mood lighting. One can alter the mood by increasing or decreasing the intensity of the light. There are options based on colour, mood, beauty, style, and a hundred other unheard-of-before options.”

Through connected LED Lighting, Philips foresee a future where lighting innovations connect seamlessly with smart controls, networks, devices and apps to positively benefit and improve lives and drive new business value. Philips is expanding its range of personal wireless lighting system for homes which is fully controllable from a smart phone or tablet.

“Philips launched the world’s first complete Power over Ethernet

It may take 10 years to build up adequate demand so that large volume LED lamps can be produced efficiently and cost effectively.

Ved Prakash Mahendru, CMD, Eon Electric Limited

connected lighting system for offices that gives workers smart-phone control of their office lighting and building managers new insights into building usage,” Mr Joshi informed.

Factors for growth The LED lighting industry is on the verge of growth with many electrical companies ranging from small scale to large scale introducing their range of LED lights. In the upcoming years the LED lighting division is set to bloom on a large share. Also the fact that consumers are becoming more aware about the advantages of LED lights a good rate of growth is expected.

Anil Bhasin, Sr. Vice President, Havells India Ltd says, “Continuous dip in prices of LED products and increasing income has made LED products more affordable due to higher volumes.”

Due to the controllability, damnability and a choice of colours, LEDs can be used in a diverse range of applications and are gaining popularity among designers to design products which were not possible earlier due to fixed shape and size of conventional lamps. Higher acceptability by the Govt. and energy efficiency is also among the major factor for the quick adoption of LED lighting.

Moreover, LED products offer a very long lifespan of approximately 50,000 hours, 2-3 times more efficient than CFL’s and up to 10 times more efficient than incandescent lights.

August 2014

43

Industry Analysis Mr Mahendru observes that, “LED Lighting is preferred because of safety compared to other fluorescent lights and CFLs. Most other sources of light have always contained some gas like sodium vapour or mercury vapour which are invariably harmful. They are harmful to the workers at the time of manufacturing of these respective lights and harmful to the people who use them as they often break during use at home or at workplace.”

Challenges faced Anything in this world cannot be simply good and great without any challenges whatsoever. The major challenge faced

by LED lighting industry is the price difference; LED lights are beyond the budget of an average buyer. The current price of LED lights in India is on the higher side. Also there is no market standardisation of LED products.

Mr Malhotra observes, “The current scenario is not too good for buyers, as there is no unified standard for LED products. Buyers are therefore going for products which are cheaper without being fully aware of the demerits within them. Lack of awareness among Indian consumers is posing a major challenge.

In the LED business, manufacturers are coming up with their own light sources within their own range, which mostly incompatible with the other manufacturer’s light sources.

So lighting market is facing the situation

By 2031, more than 80 per cent of the lighting market will be captured by the LED segment

Nikhil Malhotra, Country Manager, GlacialTech

44

August 2014

in which the light source itself is not standardised.”

Mr Mahendru says, “The first challenge is the high cost of LED lights compared to any other normal light source. Building up massive production volumes for components of LEDs is reasonably sure way to reduce initial cost of LED lamps.

Such voluminous customers do not exist today. It may take 10 years to build up adequate demand so that large volume LED lamps can be produced efficiently and cost effectively.”

Plastic housing in place of metals is increasingly being used by the manufacturers in retrofit lamps.

Arun Gupta, Global CEO, NTL Lemnis

Some of the major challenges faced by the domestic LED lighting industry are lack of awareness a huge chunk of Indian social classes is still unaware about the benefits of LEDs. “Presence of sub standard Chinese products, lack of technical standards to standardise the norms, cost of manufacturing is still high as the volumes are not there hence the price for the consumer is still high,” says Mr Gupta.

is expected that by 2021, the LED technology will penetrate 57 per cent of the lighting market, driven by the government procurement and large scale penetration by the public sector. Private sector, due to its cost economics, will be the early adopter.

By 2031, more than 80 per cent of the lighting market will be captured by the LED segment.”

According to Mr Bhasin unskilled manpower also poses as a challenge.

He says, “Critical electronic components lead time is up to 8 to 10 weeks for the LED drivers which is a challenge faced by the LED manufacturers. There is also a lack of skilled manpower which is creating a hindrance in the penetration of LED lighting in the price-sensitive Indian market. There is an inadequate availability of LED technology and absence of national standards which force the industry to import substandard products.”

Commenting on the future outlook Mr Joshi, states “With the world going digital, lighting also needs to up its game. LEDs being digital in nature make it possible which is why connected LED lighting is the next big thing. The Indian market for LED lighting is expected to grow to $400 million by 2015 making it one of the fastest growing sectors.

The growth will also be driven by an increase in government investments in energy efficient lighting systems and technological innovations to make it affordable.”

Future outlook

This year, the LED industry is expected to clock a turnover of ` 3,065 crores as against last year estimates of ` 1,666 crores as per ELCOMA estimates.

The future of LED lighting industry is promising. With government taking up initiatives to replace conventional lighting with LED a big transformation is expected in the approach towards LED lights. In the upcoming years it is expected that the LED market will have a wider perspective.

Mr Malhotra observes, “Demand for all LED lighting types is set to increase manifold in the next few years. It

“The LED lighting technology would improve in terms of efficiency and life.

The use of LED technology will not only help us in saving the energy but will also lead to reduction of emission of greenhouse gases. Our outlook for LED lighting Industry is extremely positive,” Mr Bhasin concludes.

Electrical & Power Review

GREEN ZONE

Trade dispute over domestic content requirement between India and the US continues to grow

THE SOLAR WAR

M

ore than 70 per cent of the solar power projects in India are built on imported content. There is a need for India to support its own manufacturing capabilities as domestic equipment capacity is inadequate to meet the demands of the country’s ambitious solar power mission. In a government’s bid to encourage domestic solar cell industry, India has imposed dumping duty on solar panel imported from the US, China, Malaysia and Taiwan.

In a reflex action, the US has filed a complaint in the WTO against India’s domestic content requirement (DCR) under the country’s Jawaharlal Nehru National Solar Mission (JNNSM). US claim that the DCR violates WTO agreements such as national treatment principle and agreement on trade

46

August 2014

related investment measures. The WTO has set up a dispute settlement panel to examine a complaint by the US against India’s domestic content requirements under the country’s solar power programme. The question arises how the ongoing US-India solar tussle will affect the solar power industry in India?

Commenting on the issue Ketan Mehta, Managing Director, Rays Power Infra says, “The Indian government is trying to endorse and enhance the Indian GDP. This would be getting worse if not sorted out soon, as India’s planning to install 20 GW within the next decade to provide uninterrupted power supply.”

power industry is facing and may have an adverse impact if implemented.

Second, the association claims that antidumping duties would create five lakh jobs as Indian manufacturers expand their capacity and encourage domestic players who have either shut down their

If the dispute is not settled by the two countries, WTO would impose trade sanctions on India where the consequences would be gigantic for India to face.

Impact Like every coin has two sides there are two ways of looking at this issue, the first anti-dumping duty could be one of the major concerns that solar

Ketan Mehta, Managing Director, Rays Power Infra

Electrical & Power Review

GREEN ZONE manufacturing facilities or have idled over half of their capacity to promote their own manufacturing capabilities.

Mr Mehta says, “In the current scenario, the domestic market is not well equipped and does not meet the standards of growing requirements.

The capacity is very poor and whatever little exists is already tied up with the national solar mission. If anti-dumping duty is to be imposed the solar segment of the renewable energy sector will come to a standstill, which will make the already capital intensive solar power sector more unviable than before.”

He further adds, “We will face a massive setback in inflow of funds from investors as they will be reluctant to invest due to huge initial capital investment that this sector demands. Things will worsen if government imposes this additional anti-dumping duty which would result in doubling up the investment cost.”

With reference to media reports, if anti-dumping duties were to be implemented the solar panel imported from US would incur an additional $0.81 per KW which would result in increased investment cost.

Vineet Mittal, Vice Chairman Welspun Renewables Energy Pvt. Ltd. says, “Efforts of India to use manufacturing sector and export for immediate economic rejuvenation and growth will suffer a setback since imposing anti-

Indian companies should be driven for efficient production to match the international price and thus contribute to the exports.

Vineet Mittal, Founder President, Solar Power Developers Association (SPDA)

Electrical & Power Review

dumping duty at this juncture will have a retrograde impact on our international trade relationship in multilateral forums viz. WTO especially with countries like China, USA, Malaysia, Taiwan etc. that are our target countries for export.”

He further adds, “The immediate impact of the anti-dumping duty would be that about 700 MW solar projects awarded through bidding under JNNSM and various state governments would have to be abandoned. Already 1,000 MW has got stranded.”

Despite reservation of 375 MW solely for domestically manufactured modules, indigenous companies have not been able to procure order even to the extent of 200 MW, indicating possible derailment of solar power mission.

Generation of power by developers is a pass through activity and ultimate impact comes to the power distribution companies and thereby on the energy consumers. It is assessed that the impact of 0.60 US$ per watt antidumping duty on cost of production of power shall be around ` 3 per unit translating to additional project cost of ` 3 crores/MW. Thus considering 20,000 MW targeted production of power in the country as part of the Solar Mission, the proposed anti-dumping duty implies increase in project cost by ` 60,000 crores that needs to be borne by distribution companies, the government or the public in the form of higher cost of power or the subsidy. This will increase the input cost of industry thus reducing the profitability and possibly productivity of the industry.

Solution Power Ministry is reviewing the antidumping duty proposal as the country does not have sufficient manufacturing capacity. India is expecting to grow up to 20,000 MW grid connected solar capacity in the coming years. The proposed anti-dumping duty could hamper India’ growth in solar energy domain, hence suitable solutions should be taken for unobstructed growth.

According to Mr Mittal, “The way forward for the growth of indigenous solar manufacturing industry is not through protectionist measures like imposing steep duties on domestic content. Instead the government should focus on creating an ecosystem.

As the solar technology gets updated continually, Centers of Excellence should be set up for undertaking R&D in PPP mode to drive the growth through innovation. They can focus on cutting edge inventions that should include the complete value chain of solar module and other components.”

He further adds, “Indian companies should be driven for efficient production to match the international price and thus contribute to the exports.

Foreign companies exporting to India should be encouraged to invest in the country through FDI route in possible combination with SEZ and other economic policies to establish India as an export hub for modules and other component.”

Experts suggest, the policy has to be made on the basis of mutual benefits.

India is still struggling to meet the demands of the current requirements from the solar player’s therefore India should be open to accept foreign importers until it is equipped enough to meet the demand itself.

“US should reduce other duties which they impose on Indian steel pipe products. If the dispute is not settled by the two countries, WTO would impose trade sanctions on India where the consequences would be gigantic for India to face. An alternative solution for the situation is 20 per cent of solar panels can be procured from Indian manufactures and rest is imported from other countries without duties. In the meantime, Indian government should also strengthen its manufacturing sector by providing infrastructure with tax credits which would prepare us to meet 100 per cent procurement from the domestic market,” concludes Mr Mehta. n

August 2014

47

GREEN ZONE

Solar parks in India: a boom for industrial investment The author makes an attempt to discuss salient features of a solar power plant which will guide in setting up a solar park

T

here is a lot of buzz everywhere about solar power, its future potential and the way it is going to change the entire dynamics of energy production in India. However, how exactly an investor, individual or a company reaps benefits from this infinite source of energy is still not very clear.

The overall objective of setting up the Solar Park is to promote the development of the solar power projects for electricity generation. Solar cells have been used commercially since last 50 years and more than 50,000 MW of solar power panels are installed all over the world.

The technology has passed all stringent tests and certifications of international standard and is completely proven.

Solar is the most secure of all energy sources since it is abundantly available in India. There are different ideal locations to set up solar park such as Rajasthan, Gujarat, Andhra Pradesh, Madhya Pradesh, Tamil Nadu, and Maharashtra.

But currently the favourable policies to set up solar park are in Andhra Pradesh and Madhya Pradesh.

According to the Ministry of New and Renewable Energy the policy was amended in January 2011 to prescribe solar-specific RPO be increased from

48

August 2014

a minimum of 0.25 per cent in 2012 to 3 per cent by 2022. Further, the National Action Plan on Climate Change (NAPCC) suggests increasing the share of renewable energy in the total energy mix at-least up to 15 per cent by 2020.

The government took a major step in promoting solar power in India by announcing the Jawaharlal Nehru National Solar Mission (JNNSM) in November 2009. The objective is to establish India as a global leader in solar power generation. The mission also aims to achieve grid parity and feed 20000 MW of solar power by 2022.

Power produced from a solar power plant (SPP) is very costly. The SPP costs around ` 5.5 to 6 per unit to produce solar power which is very close or even less in some cases than what we use in our daily lives. A SPP can be set up on any low cost barren land anywhere barring some hilly areas where sunlight is low as it will not make commercial sense there.

This is a myth that solar plants cannot be set up by small investors. A SPP can actually be setup at any scale from small to big; in fact smaller systems are very much viable as they can cater to the local demand in the area very well. A SPP can be as low as 0.25 MW and can be started with an investment of as low

as ` 2 crore. However, it is only valid for large solar parks and not standalone projects.

An investor can acquire government incentives for setting up a solar plant.

Accelerated depreciation benefit is available if one invests ` 100 in solar, one can save ` 30 as tax from exiting income, hence net investment is only ` 70. Investor can acquire tax holiday for 10 years and carbon credits can be availed as well as investors will be eligible for Renewable Energy certificates.

A SPP gives a fixed monthly income like a pension through sale of power without much effort as cost of maintenance of a SPP is negligible. The best way to invest is by taking space in an existing solar park where all infrastructure, land etc. is common and arranged by the park owner. Cost of a 1 MW SPP is ` 6.25 crore per MW, it has warrantee life of 25 years and minimum generation of units in 1 MW is ` 15 lacs per year. Power produced can be sold to industries, offices, malls, banks; hotel etc. at levelised average rate (over the life) of ` 7.25 per unit with the average running cost of solar plant is ` 10 lakhs per MW per year.

Authored by__ Ketan Mehta, MD, Rays Power Infra

Electrical & Power Review

Solar

Wind

Bio

Energy Efficiency

Small Hydro

Geothermal

Smart Grid

India 2014 1000 crores allocated to the Renewable Energy Sector

25,000 sqm. of Business Space Country Pavilions - Canada, Italy, Japan, Taiwan & USA Official participation from European Business and Technology Centre, PIEMONTE agency for Investment, Export and Tourism, Government of Catalonia, Spain Panel Discussion by EI Dupont

Interact with more than 500 Exhibitors Over 12, 0000 Trade Visitors expected from across the globe

German Key Technology Solution Pavilion

Engage with over 1000 conference Delegates

Ecobuild & Smart Grid Pavilion PV Installation Training Master Class

Business Matching

and many more...

Multiple Workshops Diverse Content Rich Conferences Sessions CEO/CTO Conclaves

Register now!

To know more log on to www.ubmindia.in/renewable_energy Badge Partner

rei_new.indd 1

Strategic Partner

Supporting Trade Associations

Contact us Raj Pandey M: +91-9810930171 E: raj.pandey@ubm.com Supporting Association/Organisation

17-07-2014 15:24:12

power brand

Elmeasure iPFC: intelligent power factor controller E

lmeasure has introduced yet another innovative product called iPFC. It helps in controlling the power factor thereby avoiding the penalty imposed by the electricity supply company. It also saves cost, increases internal electrical system capacity and improves voltage drop at the point of use. This leads to an efficient electrical system.

Unlike in conventional controllers, Elmeasure’s power factor controller senses three phase voltage and current. This ensures the perfect controlling of power factor in unbalanced load conditions. It’s

rightly called intelligent as it increases the life of the correction capacitor, by controlling based on the capacitor bank switching history.

It is not just a PF controller but also a true multifunction meter. It has V, A, Hz, W, VAR, and Wh parameters in addition to PF. Hence this product is truly power packed. It also has RS485 communication option. This product can be used in all incomers as a PF controller and also as a multifunction meter.

For more details visit www.elmeasure.com or e-mail at marketing@elmeasure.com

Honeywell upgrades Qatar petrochemicals expansion and MTBE (methyl tertiary butyl ether), a key gasoline additive that reduces tailpipe emissions.

Honeywell’s integrated control and safety solution, including a new fire and gas system, will improve automation at the plant, increase cyber security, and enhance operator effectiveness. QAFAC will also benefit from ongoing long-term services through Honeywell’s lifecycle support.

I

ntegrated Controls and Safety Solution to Help Drive Clean Fuel Production Honeywell Process Solutions to supply a new integrated control and safety system for Qatar Fuel Additives Company’s (QAFAC) Mesaieed Industrial City plant, 50 kms south of Doha. The upgrade will help the plant reduce operating costs and improve efficiencies as it increases production of methanol

50

August 2014

QAFAC, a joint venture between statebacked Industries Qatar, OPIC Middle East, LCY and IOL, plans to become one of the top five international producers of methanol and butane derivatives by 2020. It is also planning to commission an $80 million carbon dioxide recovery project this year to capture 500 tonnes of CO2 a day for re-injection into the production cycle.

When added to gasoline, MTBE enhances

octane levels to reduce engine knocking.

It also helps the gasoline burn more completely, which reduces tailpipe emissions and helps to meet Euro 5 standards. QAFAC produces MTBE using process technology licensed from UOP, a Honeywell company that is a leading developer of technology, catalysts, adsorbents, equipment, and consulting services to the petroleum refining, petrochemical, and gas processing industries.

“This project will help us meet growing demand for methanol, MTBE and clean fuels efficiently, while achieving the highest levels of safety and environmental performance at our site,” said Nasser Al Kuwari, QAFAC General Manager.

The solution includes Honeywell’s Experion PKS distributed control system, Honeywell’s Safety Manager, and its XLS fire detection systems.

Electrical & Power Review

power brand

Siemens and Accenture form smart grid joint venture S

iemens Smart Grid and Accenture have announced the formation of a joint venture company called Omnetric Group.

Omnetric Group will bring together Siemens’ smart grid products and solutions; Accenture’s management and technology consulting, systems integration and managed services capabilities. It will provide utilities with advanced smart grid solutions and services focused on data management and systems integration to improve energy efficiency, grid operations and reliability.

By applying a system integration framework, these solutions will integrate operational technologies such as distribution management and real-time

grid operations with IT systems, such as meter data management to support smart metering, demand response to manage energy consumption and virtual power plants to enable load management. This will provide utilities with an integrated view of their systems and data, and support advanced analysis and decision making.

Omnetric Group is headquartered in Munich. Siemens and Accenture have named Maikel van Verseveld, formerly Managing Director of Accenture Smart Grid Services in Europe, Africa and Latin America, as the chief executive officer of Omnetric Group. Martin Runge, who leads the Siemens Smart Grid Center of Competence for Central and Eastern Europe, has been appointed as chief operating officer. Carsten

Speckmann, formerly head of Supply Chain Management for Siemens Smart Grid has been appointed chief financial officer of Omnetric Group.

MECO multifunction power and energy monitor MFM-96S eliminate using conventional panel with 10 different meters. It saves more than 50 per cent of the cost in panel, as it reduce size of panel, with one MFM-96S having 10 parameters and very little wiring.

M

ECO multifunction power and energy monitor (Model: MFM96S) microcontroller-based with MODBUS RTU protocol is indigenously designed, tooled and manufactured by the R&D department of MECO and competitively priced.

Electrical & Power Review

MFM-96S is built with four rows, super bright red LED displays with 4-digit resolution and 8-digit resolution (energy import-export - 4 quadrant operations). It has Inbuilt memory to store CTR, PTR, instrument address, password and energy reset facility.

MFM-96S has simultaneous display of 10 parameters, 48 values on 16 pages for voltage, current, active power, reactive power, apparent power, frequency, power factor, active energy, reactive energy and apparent

energy (import / export - 4 quadrant operations).

TRMS Measurement, 3-phase 3-wire or 3-phase 4-wire (user selectable) CTR, PTR, instruments address, password protected, energy reset & auto / manual scroll display (programmable) are key features of MFM-96S. M0FM-96S is Ideal to monitor and acquire power data from generator, remote monitoring, building management system, PLC’s / SCADA application, energy audit, QC testing, power management, etc. RS485 port with MODBUS protocol and power master software to store parameters on the PC is optional.

For more details, email: sales@mecoinst.com

August 2014

51

power brand

CG inaugurates its first Global Design Centre for motors South East Asia, the Middle East, Africa and Europe.

CG’s GDC will synergise teams across regions, cross-pollinate ideas, co-create, and deploy best practices leading to the optimisation of CG’s global network of engineering resources and manufacturing facilities to consequence highly integrated innovative products and technologies.

A

vantha Group company CG has opened its first Global Design Centre (GDC), in Bhopal thereby boosting its support to customers globally for market needs in oil and gas, cement, mining and metals, water treatment, electrical transportation, power, to name a few . The GDC’s key markets would include countries spread across

The product portfolio would cover commercial motors, medium voltage motors and generators that will be developed as per customer demand in a single location. Other offerings include LV/MV motors up to 25 MW, synchronous machines up to 70 MVA and the LV/MV development of AC drives.

CG’s global technology pool will

thrive through effective international collaboration, and with the support of 90 local service centres in more than 15 countries. G.D.C. currently has over 150 designers working globally. The centre is designated to offer a centralised system of customising CG’s products that would reflect global standards across geographies.

CG’s Global Research Centre in Mumbai is the hub of technology development for all of CG’s businesses. By integrating the GDC in Bhopal, it further reinforces CG’s global network of centres located in Canada, Belgium, Spain, Newark Hungary, Germany, Sweden and India.

The GDC will support, address and sustain the current and emerging business objectives of CG’s Industrial portfolio.

GlacialPower launches 2-in-1 LED driver with adjustable current and voltage G

lacialPower, a division of technology manufacturer GlacialTech, announced a new dualmode LED driver powering LED lighting from 7W to 20W. Featuring either constant current or constant voltage operation, the LED driver mode and power output can be easily adjusted to fit a variety of lighting and signage applications. Power input and output lines are connected via robust and easy-to-use clips.

2-in-1 The GP-LC7028 LED driver is two LED drivers in one, with easy DIP switch configuration to either constant current or constant voltage mode for enhanced functionality. It can be easily customised to specific LED lighting needs with 8 modes of constant current operation

52

August 2014

safety standards, and has also passed EN55015, EN61000, and EN6154 in internal testing. In addition, OverCurrent Protection (OCP) and ShortCircuit Protection (SCP) mean this LED driver will help customers meet all relevant safety standards in their LED lighting and signage applications. from 250mA to 700mA, and constant voltage modes from 12V, 24V and 28V output available. For constant current mode with 1-10V dimming and push dimming can also easily be enabled with a dimmer.

Safety and reliability Safety is number one with the GPLC7028 LED driver. As a Class 2 power supply, it’s fully insulated and is certified to EN6134-1 and EN6134-2-13

Features • Universal AC input up to 264 VAC • Support for constant current or constant voltage mode • Certified to EN6134-1, EN6134-2-13 • Built-in PFC function • Fully isolated Class 2 plastic case • Constant current mode with 1-10V dimming and PUSH dimming • 3 years warranty • Over current and short circuit protection.

Electrical & Power Review

power brand

Mitsubishi displays strength at AMTEX M

itsubishi Electric has displayed its range of CNCs, drives, motor and other factory automation and industrial division products at recently concluded AMTEX 2014.

Mitsubishi E70 Series CNC Seeking easier usability and higher cost efficiency, the E70 Series, a new standard CNC series offers high performance and high operability. With primary features such as lesser wiring, compact size, latest hardware, the E70 Series is best suited to simple lathes and milling machines.

tapping machine, multi –axis machining centre, compact lathe etc. Additionally, it is equipped with various support functions like data backup, program restart, ground fault detection for each motor etc., which help minimise the downtime.

Mitsubishi M700 Series CNC M700V Series is a state of art model that provides high speed and accuracy machining and advanced control technology. These functions are for

customer who keeps pushing for higher production output. Mitsubishi M700 series CNC support top level manufacturing.

Mitsubishi C70 Series CNC

iQ Platform compatible CNC C70 Series is incorporated with the company’s state of the art technologies. High performance CNC integrated with high speed PLC offers high speed control to reduce cycle time. Also a range of Factory Automation products helps construct flexible lines.

Mitsubishi M70 Series CNC The M70V CNC Series is specially made for pursuing high speed and accuracy.

The system can deliver remarkable reduction in cycle time, optimum performance for various applications such as compact milling machine,

Schneider Electric showcases smart city model at ELASIA 2014 S

chneider Electric India has showcased its advanced technologies and solutions which enable integration and automation of various market segments with an eye to enabling efficient, sustainable and liveable smart cities.

Through integration at energy, power and information technology levels, Schneider Electric’s integrated solutions have been efficiently managing and driving smart cities across the globe.

Amitabh Kant, Secretary of the Department of Policy and Promotion inaugurated Schneider’s stall at Elasia.

In the energy segment, Schneider showcased dry-type cast resin transformers (Trihal), Premset MV switchgear, feeder automation, substation automation and advanced distribution management system for Smart City applications.

The company has also demonstrated solutions for power and IT segments. Its Blokset aluminium panel, smart panel and Accusine panel help manage volatility in voltage and manage it efficiently to ensure smooth point-to-point electricity supply. Similarly the Galaxy 3000, the 3-phase UPS system deftly manages power supply that guarantee smooth and integrated running of systems.

Electrical & Power Review

Speaking at the occasion, Vivek Yadav, Regional Sales Head – North, Schneider Electric India said, “Our solutions demonstrate our capacity to manage and sustain the 5 pillars of a Smart City which are Smart energy, Smart Water, Smart Buildings, Smart Mobility and Smart Public Services. It also shows our strength in providing a complete end-to-end management service that is built on the principle of efficiency and sustainability.”

Schneider Electric has helped develop concepts like smart energy, smart water, smart integration, smart buildings and smart public services and build faith through deft management of constituents that are integral to the concept of smart city – a dream India wants to translate into reality.

August 2014

53

PEOPLE B Ashok takes over as Chairman of IndianOil B Ashok has taken over the reins of Indian Oil Corporation Ltd. as its Chairman effective from 16th July.

Prior to his appointment as Chairman IndianOil, Mr Ashok was Executive Director (Retail Sales) and Executive Director in the Corporate Office at New Delhi. He has a wide experience in various roles of the Marketing Division and has also been a harbinger of the Business Development activities at its Corporate Headquarters. Having global exposure, he also has headed the overseas business of IndianOil in South-East Asia based at Kuala Lumpur, Malaysia and recently on Board of Lanka IOC. During his earlier assignments in the Business Development group of IndianOil, Mr Ashok was instrumental in laying the first footprints in overseas business, LNG and petrochemicals. Recently while serving as a Board Member in Lanka IOC, he was instrumental in its turnaround as a highly profitable venture and declaring a maiden dividend to the shareholders. He was also a strong contributor in Training & Development and Corporate Communications activities with several accomplishments to his credit besides experience in Lubes and Technical Services.

A mechanical engineer from College of Engineering, Guindy, Madras University with a Post-Graduate Management qualification from the prestigious National Management Programme of Management Development Institute, Mr Ashok has over 33 years of experience in the oil and gas industry.

Prabhakar appointed TGenco MD The Telangana government has appointed D Prabhakar Rao as the Chairman and Managing Director of Telangana Generation Corporation Ltd. (TGenco).

Prabhakar Rao has over 45 years of experience and worked in various positions including finance advisor and chief controller of accounts of erstwhile APSEB, member (Accounts), APSEB, director, finance, APTransco, director of AP Gas Power Corporation and director (finance) of APGenco.

Before demitting office recently, he served as Joint Managing Director of APGenco. During this tenure he was instrumental in tying up funds with World Bank, Asian Development Bank, Power Finance Corporation (PFC) among others.

54

August 2014

Electrical & Power Review

India's Largest Exhibition and Conference for the Solar Industry Bombay Exhibition Centre, Halls 5 and 6 Mumbai Intersolar India is your gateway to one of the most promising solar markets in the world.

Network with over 8,500 potential business contacts from the Indian solar industry Stay up to date with the latest trends and technological developments Boost your brand visibility with an established B2B event

Trade Zone

t o psh

a n S et

k r a M

IEX & PXIL Price and Volume Day Ahead Market-June’14 Delivery day

"IEX Avg MCP (Rs./kWh)"

"PXIL Avg MCP (Rs./kWh)"

"IEX MCV (MWh)"

"PXIL MCV (MWh)"

Delivery day

"IEX Avg MCP (Rs./kWh)"

"PXIL Avg MCP (Rs./kWh)"

"IEX MCV (MWh)"

"PXIL MCV (MWh)"

1st June

2.96

3.64

79,852

972

16th June

3.97

4.20

79,671

844

2nd June

3.72

3.39

79,918

1,134

17th June

3.70

3.41

83,690

520

3rd June

4.06

3.53

78,662

1,965

18th June

3.82

3.28

81,420

684

4th June

4.04

3.81

91,936

1,609

19th June

4.37

3.54

83,658

644

5th June

4.02

4.04

99,975

1,224

20th June

3.92

3.93

94,743

874

6th June

4.02

3.96

97,446

1,285

21st June

3.86

3.34

85,567

602

7th June

4.14

3.83

99,086

1,199

22nd June

2.85

3.11

79,170

790

8th June

3.50

3.78

102,269

1,600

23rd June

3.11

3.40

83,055

398

9th June

3.93

3.75

100,585

240

24th June

3.00

3.18

71,701

555

10th June

4.25

4.20

95,909

290

25th June

2.91

3.21

78,364

584

11th June

4.44

4.03

102,475

1,481

26th June

3.29

2.06

84,575

1,046

12th June

4.48

4.14

98,102

459

27th June

4.40

3.40

74,876

216

13th June

4.67

4.38

94,523

664

14th June

4.41

3.94

90,741

590

15th June

3.58

4.08

82,721

1,094

28th June

4.41

3.05

80,183

747

29th June

4.24

3.59

85,715

515

30th June

4.60

3.89

76,191

978

31st May

3.95

3.38

83,387

1,442

IEX & PXIL Price & Volume in Day Ahead Market-June'14 Volume (MWh)

IEX MCV (MWh)

PXIL MCV (MWh)

IEX Avg MCP (Rs./kWh)

Price (Rs/KWh)

PXIL Avg MCP (Rs./kWh)

5.00

120,000

4.50 100,000

4.00 3.50

80,000

3.00 2.50

60,000

2.00 40,000

1.50 1.00

20,000

0.50 0.00

-

1st June

56

4th June

August 2014

7th June

10th June

13th June

Day

19th June

22nd June

25th June

28th June Source: IEX

Electrical & Power Review

Trade Zone

IEX Non-solar REC Trade Details Month

Buy Bid

Sale Bid

Cleared Volume

Cleared Price (Rs/REC)

Month

Buy Bid

Sale Bid

Cleared Volume

Cleared Price (Rs/REC)

Apr'11

260

4,046

260

1,500

Nov'12

54,976

921,376

54,976

1,500

May'11

14,002

15,143

14,002

1,500

Dec'12

173,644

855,784

173,644

1,500

Jun'11

72,002

21,331

15,902

1,505

Jan'13

190,875

1,371,503

190,875

1,500

Jul'11

81,493

34,976

14,668

1,555

Feb'13

48,093

1,526,114

48,093

1,500

Aug'11

145,204

49,897

22,096

1,800

Mar'13

307,260

1,308,044

307,260

1,500

Sep'11

196,159

76,026

41,385

2,300

Apr'13

10,670

1,221,579

10,670

1,500

Oct'11

201,532

135,424

92,303

2,700

May'13

18,543

1,280,605

18,543

1,500

Nov'11

257,578

155,917

96,154

2,900

Jun'13

36,147

1,401,048

36,147

1,500

Dec'11

264,093

166,000

105,942

2,950

Jul'13

72,321

1,676,875

72,321

1,500

Jan'12

414,387

186,610

165,460

3,051

Aug'13

31,101

1,872,449

31,101

1,500

Feb'12

360,330

215,157

190,482

3,066

Sep'13

38,195

2,325,171

38,195

1,500

Mar'12

272,366

223,907

190,354

2,900

Oct'13

98,921

2,447,684

98,921

1,500

Apr'12

237,100

105,844

62,277

2,201

Nov'13

97,743

2,760,452

97,743

1,500

May'12

339,882

246,501

153,125

2,402

Dec'13

250,722

2,712,444

250,722

1,500

Jun'12

313,973

330,371

223,164

2,402

Jan'14

78,955

2,557,666

78,955

1,500

Jul'12

149,628

435,348

147,369

2,000

Feb'14

176,107

2,015,377

176,107

1,500

361,842

2,893,896

361,842

1,500

Aug'12

248,168

568,097

248,168

1,500

Mar'14

Sep'12

239,364

664,641

239,364

1,500

Apr'14

16,798

2,924,976

16,798

1,500

Oct'12

132,231

851,177

132,231

1,500

May'14

16,142

3,615,695

16,142

1,500

June'14

50,743

3,166,863

50,743

1,500

IEX Non-solar REC Trade Details Sale Bid

Cleared Volume

Cleared Price (Rs/REC)

2,000,000

3,500

1,600,000

2,800

1,200,000

2,100

800,000

1,400

400,000

700 0 Apr'11 May'11 Jun'11 Jul'11 Aug'11 Sep'11 Oct'11 Nov'11 Dec'11 Jan'12 Feb'12 Mar'12 Apr'12 May'12 Jun'12 Jul'12 Aug'12 Sep'12 Oct'12 Nov'12 Dec'12 Jan'13 Feb'13 Mar'13 Apr'13 May'13 Jun'13 Jul'13 Aug'13 Sep'13 Oct'13 Nov'13 Dec'13 Jan'14 Feb'14 Mar'14 Apr'14 May'14 June'14

0

Cleared Price (Rs./REC)

No. of REC

Buy Bid

Source: IEX

Electrical & Power Review

August 2014

57

EVENT 5th World Renewable Energy Technology Congress Manekshaw Centre, Delhi 21st- 23rd August World Renewable Energy Technology Congress and Expo is one of the largest renewable and sustainable energy sector trade shows in India. The event will have presence of high profiled global speakers and industry leaders who will have thoughtprovoking panel discussions. The line of items put on exhibit at the show is truly extensive, ranging right from power and electricity generation machines, sustainable energy tools and industrial equipment, to safety equipment, technical consultancy services and banking facilities. The event will prove helpful for participants to get acquainted with the latest developments from this sector at the topical conferences that are held during the event. The show focuses on the overall development of the national energy sector and the cost effective nature of the event adds to its business worth further.

Renewable Energy India Expo India Expo Centre, Greater Noida 3rd- 5th September Organised by UBM India, the Renewable Energy India Expo is an annual event that aims to accelerate growth of the Indian renewable energy sector by offering sustainable development opportunities to businesses in this industry. The event brings together decision makers and influencers as well as technical experts and professionals from leading companies involved in the renewable energy generation, transmission and distribution within India and around the world. It focuses on up scaling and mainstreaming environment-friendly renewable energy resources such as solar, wind, biomass, bio-fuel, small hydro, geothermal and energy efficiency through an international exhibition and conference platform. The upcoming 8th edition is expected to attract more than 500 exhibitors, 12,000 trade visitors and 1,000 conference delegates from across the globe.

4th India Nuclear Energy Summit Westin, Mumbai 25th-26th September 4th India Nuclear Energy Summit will welcome nuclear community to join this forum where the most prominent industry leaders and government officials will be providing informative and inspiring discussions pertaining to India’s current needs, revealing technologies that can assist in achieving India’s ambitious future. It is a unique platform for close interaction with national and international companies. Major issues like power regulations and polices, Nuclear power capabilities and future of nuclear energy will be addressed at the 2014 event.

6th India Nuclear Energy 2014 Nehru Centre, Mumbai 6th-8th November In an endeavour to support and promote the growth and development of the civil nuclear energy sector, UBM India presents India Nuclear Energy 2014, an international exhibition and summit for the civil nuclear energy sector. A conference designed to address the latest developments, challenges and issues surrounding the civil nuclear energy sector. This event will help companies tap the rich potential of the nuclear industry in India; India Nuclear Energy will give the ideal platform to meet, interact and network with the entire civil nuclear energy fraternity of India.

58

August 2014

Electrical & Power Review

Regd. No. MH/MR/North East/290/2013-15 • Posted at Tilak Nagar PO Mumbai - 400089 on 1st & 2nd of every month.• English • Monthly • Date of Publication: 1st of every month.

60